LAS VEGAS — Sony Honda Mobility, the joint venture between electronics giant Sony and automaker Honda, announced at CES 2026 that it plans to begin customer deliveries of its flagship electric vehicle, the Afeela 1, in the United States in late 2026. Priced at around $90,000, the sedan represents the culmination of years of development for the partnership, which first teased its electric vehicle ambitions with the Vision-S concept back in 2020. The company also unveiled an SUV concept that could enter production as early as 2028, signaling broader ambitions in the electric vehicle market.
SHM CEO Yasuhide Mizuno highlighted the milestone during a press event here, describing the upcoming deliveries as a key step forward. "We are excited to bring the Afeela 1 to customers starting late next year," Mizuno said, according to statements reported by The Verge. The announcement comes after the company initiated trial production of the Afeela 1 at Honda's East Liberty Auto Plant in Ohio earlier this month, a move that underscores the venture's commitment to U.S. manufacturing.
The Afeela Prototype 2026, showcased at the event, bears a striking resemblance to the pre-production Afeela 1, featuring short overhangs, a long wheelbase, and an expanded overall footprint. However, SHM provided few additional specifics about the prototype, with Mizuno referring to it as an "early-stage concept." This cautious approach reflects the company's gradual progression from concept to reality since its CES debut four years ago, when it first demonstrated advanced infotainment systems but stopped short of full vehicle prototypes.
In preparation for the launch, Sony Honda Mobility outlined plans for phased demo drives targeted at early reservation holders. These test opportunities will allow potential buyers to experience the vehicle ahead of full deliveries. The company also confirmed that sales will expand beyond initial markets, with availability in Arizona joining California in 2027. For Japanese customers, first deliveries are slated to begin in early 2027, Mizuno added.
At its core, the Afeela 1 positions itself as more than just a car—it's a rolling entertainment hub powered by Sony's technological prowess. The vehicle includes expansive screens spanning the dashboard, 40 sensors and cameras enabling semi-autonomous driving assistance, all-wheel drive capabilities, and integrations for augmented reality and immersive "virtual worlds" during drives. Sony has even teased direct streaming of PlayStation 5 games to the car's infotainment system, appealing to gamers and tech enthusiasts alike.
This entertainment-focused design stems from the unique synergy between Sony's media expertise and Honda's automotive engineering. The partnership, formed in 2022, aims to differentiate the Afeela in a segment where vehicles are increasingly seen as extensions of digital lifestyles. Yet, as the company inches toward production, it faces logistical hurdles, including scaling up from trial runs at the Ohio plant to meet demand.
The timing of the delivery announcement is notable amid a shifting electric vehicle landscape. While high-end EVs like the Afeela 1 target premium buyers, the broader market has seen demand cool for models above $90,000. Intense competition from established players such as Tesla, Mercedes-Benz, Audi, and BMW has saturated the luxury segment, prompting many manufacturers to pivot toward more affordable options.
Industry observers point to the rising influence of Chinese automakers, like BYD and NIO, as a driving force behind this trend. These companies have flooded the market with cost-competitive EVs, pressuring Western brands to lower price points to capture mass-market share. Sony Honda Mobility's focus on a $90,000 entry point places it squarely in the premium arena, where sales have reportedly declined amid economic uncertainties and charging infrastructure challenges.
Despite these headwinds, SHM executives expressed optimism about the Afeela's prospects. The SUV concept revealed at CES, which draws inspiration from the sedan's design language, could broaden the lineup's appeal. Production for this model is targeted for the U.S. as early as 2028, potentially tapping into the growing demand for electric SUVs. Details remain sparse, but the concept's larger form factor suggests it will cater to families and adventure seekers.
Background on the Sony-Honda alliance reveals a deliberate strategy to blend consumer electronics with mobility. Since the 2020 Vision-S reveal, the companies have invested heavily in software-defined vehicles, where over-the-air updates and entertainment features keep cars relevant long-term. Trial production at the East Liberty facility, a Honda staple for building popular models like the CR-V, indicates confidence in American supply chains despite global chip shortages that have plagued the industry.
Reservation systems for the Afeela 1 opened last year, with early interest reportedly strong among tech-savvy consumers. However, SHM has not disclosed reservation numbers or projected sales volumes. The phased demo drives, set to roll out in the coming months, will likely serve as a marketing tool to build buzz and gather real-world feedback before mass production ramps up.
Expansion to Arizona in 2027 aligns with the state's burgeoning EV ecosystem, including incentives for clean energy adoption. California, as the traditional launchpad for new vehicles, will remain the primary market initially. Japanese deliveries in early 2027 reflect Honda's strong domestic base, where electric vehicle adoption is accelerating under government mandates for carbon neutrality.
Looking ahead, the Afeela's success will hinge on execution in a competitive field. While its infotainment innovations set it apart, reliability, range, and charging compatibility will be crucial for mainstream acceptance. As the industry grapples with affordability, Sony Honda Mobility's premium bet could either carve a niche or struggle against budget alternatives from abroad.
The CES reveal caps a year of progress for SHM, from prototype unveilings to production starts. With deliveries on the horizon, the venture is poised to test whether Sony's entertainment ecosystem can translate to the road. As electric vehicles evolve, partnerships like this one highlight the convergence of tech and transportation, promising a future where cars are as much about experiences as they are about getting from point A to B.
For now, the focus remains on late 2026 deliveries, a date that could shift based on regulatory approvals and supply chain dynamics. SHM's measured approach, from concepts to customer hands, suggests a careful rollout in an unpredictable market.