As electric vehicle manufacturers struggle to remain relevant, a new competitor is about to hit California roads: Sony and Honda.
While it's packed to the sunroof with Sony speakers and displays and made in a Honda factory, it's hitting the market just as many companies, including Honda, are pulling out.
The joint venture between the two companies, called Sony Honda Mobility, plans to launch the new luxury electric vehicle brand, Afeela, in California later this year.
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The sedan is a shameless bet that the two old-guard brands can succeed where others have struggled.
“We believe customers are looking for more than just a means of transportation” in their luxury electric vehicles, Sony Honda Mobility President and CEO Shugo Yamaguchi said in a statement to the Times. “They are looking for technology, security, design and a personalized experience.”
Afeela vehicles hope to do for driving what the Sony Walkman did for walking.
They have 28 speakers, immersive screens, an artificial intelligence assistant and an entertainment system for Karaoke or Sony PlayStation games.
The interior of the Afeela vehicle at Afeela Studio in Beverly Hills.
(Ronaldo Bolaños/Los Angeles Times)
Even as the end of government incentives for electric vehicles has taken the wind out of the market, Sony and Honda hope there are enough high-end Tesla buyers who want to try something different.
Some electric vehicle enthusiasts have felt alienated by Tesla CEO Elon Musk's affiliation with President Trump, who has strangled government support for green vehicles.
In West Los Angeles, a large Afeela ad above a Tesla dealership puts the electric vehicle leader in the spotlight.
“Get stares, not glares,” says the poster, with a glamorous photo of a stylish silver Afeela 1.
Tesla's market share in California fell to 48% last year from about 53% the year before.
Honda's own electric vehicles haven't been very successful. Its market share in California was 3.8% last year.
The Japanese automaker announced Thursday that it would eliminate three electric models it had planned to build and sell in the United States. Reversing its big plans could cost the company more than $15 billion, he said.
“The suspension of electric vehicle subsidies in North America undermined growth, and competition in China meant we were unable to offer attractive models or maintain our competitive advantage.” Honda CEO Toshihiro Mibe told reporters, according to Bloomberg.
Afeela enters the market at a time when federal support for electric vehicles is low and public enthusiasm is flagging.
Major automakers including Ford, General Motors and Stellantis are scaling back their electric vehicle ambitions. Lucid, an electric vehicle maker based in Newark, California, has been struggling to turn a profit and recently laid off more than 300 employees.
Rivian, an Irvine-based maker of luxury electric vehicles, said last year it was laying off more than 800 workers to cut costs.
Afeela has showrooms in San Jose, Beverly Hills and Century City. The company builds the cars at a Honda plant in Marysville, Ohio, and will make its first deliveries by the end of the year.
The Sony and Honda joint venture is in the midst of legal hurdles as it aims to build a strong reputation. Last August, the California New Automobile Dealers Association. filed a lawsuit against American Honda Motor Company and Sony Honda Mobility, alleging that the companies violated franchise law by selling Afeela vehicles directly to consumers rather than through Honda dealers.
Various screens inside the Afeela vehicle at Afeela Studio, Beverly Hills.
(Ronaldo Bolaños/Los Angeles Times)
For now, Californians can reserve an Afeela 1 with a $200 deposit. Selling only in the Golden State at first will allow the company to learn from an engaged customer base, Yamaguchi said.
“California is one of the most advanced markets for the adoption of electric vehicles, grid infrastructure and new mobility technologies,” he said. “It also represents a culture of innovation and creativity that aligns well with Afeela’s vision.”
The company plans to begin sales in Arizona next year.
The car comes in two versions, starting at $89,900 and $102,900. Both models come with level two automation. When using a vehicle with Level 2 automation, the driver must remain in control and attentive while the system assists with braking, acceleration, or steering.
While some of Afeela's technologies may have an edge over the competition, the brand will have to prove there is healthy demand at that price, said Brian Moody, an auto industry analyst.
(Ronaldo Bolaños/Los Angeles Times)
Sony and Honda are looking to capitalize on growing interest in self-driving technology and plan to eventually equip all of their vehicles to have full autonomy. The Afeela 1 comes with 18 cameras, nine radars, 12 ultrasonic sensors and lidar, a laser-based radar that Waymo uses to power its self-driving taxis.
“You have to pay attention and we definitely don't want people to think they can fall asleep behind the wheel,” said Raisu Williams, engagement operations associate at Afeela. “But our goal is to reach that level four of autonomy, where you don't have to drive at all.”
While some of Afeela's technologies may have an edge over the competition, the brand will have to prove there is healthy demand at that price, said Brian Moody, an auto industry analyst.
“Tesla and its platforms are getting older, and the Lucids and Afeelas of the world feel more modern, more futuristic,” Moody said. “We'll see if the car can make the leap from early adopters and tech-type people to the mainstream.”
The AFEELA logo is located above the rear cameras of an Afeela vehicle.
(Ronaldo Bolaños/Los Angeles Times)
Afeela hopes to be more successful than Lucid in attracting a wide audience. Lucid laid off more people this year after laying off about 6,800 people in 2024 and hiring actor Timotheé Chalamet as a brand ambassador.
“I think Afeela is in danger of going down the same path as Lucid,” Moody said. “If those cars can be successful in California, will that translate to success in the rest of the country and the world?”
Sony Honda Mobility began when the two founding companies formed a strategic alliance in 2022. The new company presented its first Afeela prototype in 2023 at the Consumer Electronics Show in Las Vegas.
AFEELA 1 was unveiled during a Sony press conference at the Consumer Electronics Show in Las Vegas last year. ,
(Ian Maule/AFP via Getty Images)
Auto industry experts said Honda's bet on Afeela is a bit risky for the major automaker, but it could pay off. Because Sony and Honda each own 50% of Sony Honda Mobility, the companies reduce their liability by sharing the risk, said automotive analyst Kristin Shaw.
Honda has popular gasoline models, such as the Pilot and CR-V, to fall back on if its Sony ambitions fail.
“Honda's lifeline is still in its production vehicles,” Shaw said. “Honda is hedging its bets across the board, and Afeela is a way to explore what could happen.”
