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Honda and Sony Halt AFEELA EV Launches as Honda Overhauls Electrification Strategy

Story Highlights
  • Honda and Sony’s joint venture Sony Honda Mobility will scrap its first AFEELA EV models and undergo a strategic review amid a changing EV market.
  • Honda’s March decisions to cancel North American EV launches will trigger large impairment losses for fiscal 2026, reflecting slower EV demand and fiercer software-led competition in Asia.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Honda and Sony Halt AFEELA EV Launches as Honda Overhauls Electrification Strategy

Meet Samuel – Your Personal Investing Prophet

Honda Motor Company ( (HMC) ) just unveiled an announcement.

On March 25, 2026, Honda said its equity-method affiliate Sony Honda Mobility will discontinue development and launch of its first EV model AFEELA1 and a second planned model, prompting Sony, Honda and the JV to conduct a broad review of the venture’s business direction. The companies plan to reassess Sony Honda Mobility’s role and positioning in light of a changing EV market, although Honda expects any impact on its revised full-year earnings forecast for the year ending March 31, 2026 to be immaterial.

The March 25 announcement follows Honda’s March 12, 2026 decision to cancel certain EV models slated for North American production, as part of a wider reassessment of its automobile electrification strategy. In response to slowing EV demand in North America, shifting U.S. policy, and intensifying software-driven competition in China and Asia, Honda now expects to book substantial impairment and related losses on EV-focused assets and some equity-method investments in China for the fiscal year ending March 31, 2026.

The most recent analyst rating on (HMC) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Honda Motor Company stock, see the HMC Stock Forecast page.

Spark’s Take on HMC Stock

According to Spark, TipRanks’ AI Analyst, HMC is a Neutral.

The score is held back primarily by weakened cash-flow trends and soft technical momentum (price below key moving averages with negative MACD). These are partly offset by an attractive valuation (moderate P/E and high dividend yield) and an earnings-call backdrop that maintains guidance and emphasizes liquidity and motorcycle strength, despite significant auto/EV and tariff-related headwinds.

To see Spark’s full report on HMC stock, click here.

More about Honda Motor Company

Honda Motor Co., Ltd. is a global automotive and motorcycle manufacturer based in Tokyo, operating across automobiles, motorcycles and financial services. The company has pursued long-term carbon neutrality with a strong legacy in internal combustion and hybrid vehicles, while expanding into electric vehicles and advanced mobility solutions through in-house programs and partnerships such as Sony Honda Mobility Inc.

Average Trading Volume: 1,344,171

Technical Sentiment Signal: Sell

Current Market Cap: $31.89B

For detailed information about HMC stock, go to TipRanks’ Stock Analysis page.

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