Updated
Updated · The New York Times · Jun 20
Honda, Sony Scrap $100,000 Afeela EV Brand as Weak Demand Hits Launch
Updated
Updated · The New York Times · Jun 20

Honda, Sony Scrap $100,000 Afeela EV Brand as Weak Demand Hits Launch

3 articles · Updated · The New York Times · Jun 20

Summary

  • March brought the end of Afeela after Honda and Sony halted their joint EV brand despite completing trial production and opening showrooms.
  • Weak EV demand undercut a launch already burdened by a price above $100,000, with some versions reaching $120,000, and a sedan format in an SUV-led market.
  • A roughly 300-mile range and the Afeela name also hurt its appeal, with analysts saying buyers questioned both the product's value and the brand's staying power.
  • The collapse adds Afeela to a long list of failed automaker spinoffs such as Ford's Think, Toyota's Scion and GM's Saturn, underscoring how costly new-car brands can be to build.

Insights

Was Afeela's failure a car problem or a clash of corporate cultures between Honda and Sony?
Why do car giants like Honda and GM keep failing when launching innovative new sub-brands?
Is the auto industry's pivot from EVs to hybrids a smart market response or a costly overcorrection?