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Honda & Sony End Afeela EV Project, Eye Non-EV Opportunities
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Key Takeaways
Honda cancels Afeela 1 EV project with Sony but keeps their 50-50 joint venture active.
Sony and Honda pivot to AI assistant and audio tech built from Afeela 1 development.
Honda revises EV strategy, reassigns 400 staff, and may revisit EV plans later.
Honda Motor Co. (HMC - Free Report) and Sony Group Corporation (SONY - Free Report) will continue working together, but have dropped plans to jointly develop an electric vehicle. The companies canceled the Afeela 1 EV project, although their 50-50 joint venture will remain in place. Instead of moving ahead with a full electric car, both companies will now explore other opportunities while maintaining their partnership.
The decision follows Honda’s revised electrification strategy. The partnership was originally formed to combine Honda’s automotive hardware expertise with Sony’s software and gaming capabilities. The Afeela 1 was introduced as the first product of this effort, as the companies aimed to catch up with EV competitors.
Following the latest development, approximately 400 employees tied to the effort are expected to be reassigned, with the companies planning to absorb a portion into existing operations, while the joint venture remains intact and continues to focus on other collaborative areas.
Going forward, Sony and Honda will focus on non-EV products and services using technologies developed for Afeela 1. These include an artificial intelligence assistant and an audio system. They will also explore ways to apply these across different applications.
The possibility of future EV collaboration has not been ruled out. The partnership may still develop a fully electric passenger vehicle at a later stage, although no timeline has been provided.
Per Autoblog, North American markets may have to wait longer for a new Honda electric vehicle, as industry pressure has led the company to scale back its plans, potentially affecting its position as electrification expands.
Honda continues to offer electric and hybrid models in the market. However, a decline in sales, along with the need to catch up, has led the company to revisit its core business before taking further steps in the EV space.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for RNLSY’s 2026 sales and earnings implies year-over-year growth of 12.1% and 169.5%, respectively. The EPS estimates for 2026 and 2027 have improved 30 cents and 14 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for MGA’s 2026 sales and earnings implies year-over-year growth of 2.3% and 19%, respectively. The EPS estimate for 2026 and 2027 has improved 61 cents and 86 cents, respectively, over the past 60 days.
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Honda & Sony End Afeela EV Project, Eye Non-EV Opportunities
Key Takeaways
Honda Motor Co. (HMC - Free Report) and Sony Group Corporation (SONY - Free Report) will continue working together, but have dropped plans to jointly develop an electric vehicle. The companies canceled the Afeela 1 EV project, although their 50-50 joint venture will remain in place. Instead of moving ahead with a full electric car, both companies will now explore other opportunities while maintaining their partnership.
The decision follows Honda’s revised electrification strategy. The partnership was originally formed to combine Honda’s automotive hardware expertise with Sony’s software and gaming capabilities. The Afeela 1 was introduced as the first product of this effort, as the companies aimed to catch up with EV competitors.
Following the latest development, approximately 400 employees tied to the effort are expected to be reassigned, with the companies planning to absorb a portion into existing operations, while the joint venture remains intact and continues to focus on other collaborative areas.
Going forward, Sony and Honda will focus on non-EV products and services using technologies developed for Afeela 1. These include an artificial intelligence assistant and an audio system. They will also explore ways to apply these across different applications.
The possibility of future EV collaboration has not been ruled out. The partnership may still develop a fully electric passenger vehicle at a later stage, although no timeline has been provided.
Per Autoblog, North American markets may have to wait longer for a new Honda electric vehicle, as industry pressure has led the company to scale back its plans, potentially affecting its position as electrification expands.
Honda continues to offer electric and hybrid models in the market. However, a decline in sales, along with the need to catch up, has led the company to revisit its core business before taking further steps in the EV space.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote
Zacks Rank & Key Picks
Honda Motor stock currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are RENAULT (RNLSY - Free Report) and Magna International (MGA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RNLSY’s 2026 sales and earnings implies year-over-year growth of 12.1% and 169.5%, respectively. The EPS estimates for 2026 and 2027 have improved 30 cents and 14 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for MGA’s 2026 sales and earnings implies year-over-year growth of 2.3% and 19%, respectively. The EPS estimate for 2026 and 2027 has improved 61 cents and 86 cents, respectively, over the past 60 days.