Honda cancels the two electric vehicles it was developing with Sony

In a significant development this month, Honda has made the decision to scrap three electric vehicle projects initially slated for production in the United States. This move has sent shockwaves throughout the automotive industry, particularly affecting Sony Honda Mobility, the joint venture between the automaker and the tech giant. Sony Honda Mobility announced that it will also abandon its plans to launch electric vehicles. Despite Honda's reputation as an early pioneer in hybrid technology, the company has found itself trailing behind competitors in the fully electric vehicle segment. The Honda e, often celebrated for its charming design and compact size, has failed to capture a substantial market, with just over 12,000 units sold across Europe and Japan in four years. In North America, the Prologue model has fared better, achieving sales of 33,000 in 2024 and an additional 39,000 the following year. However, interest in this rebadged GM vehicle, which shares its platform with the Chevrolet Blazer, has sharply declined since the expiration of the federal clean vehicle tax credit last fall. Production of the Prologue is set to cease at the end of this year. Moreover, Honda's previous plans to leverage GM's battery technology for a range of affordable EVs, expected to debut in 2027, were also scrapped late last year. The swift sequence of cancellations has come as a surprise to many industry observers, especially in light of the recent announcement from Sony Honda Mobility.