According to foreign media reports, on June 30, Sony Group and Honda MotorElectric vehicleSony Honda Mobility Inc., a joint venture, disclosed that the company’s annual operating loss doubled to 52 billion yen (about $362 million) in the fiscal year ending in March this year, compared with a loss of 20.5 billion yen in the previous fiscal year.
AFEELA 1; Image credit: Sony Honda Mobile
Since the joint venture has not yet had products on the market, the company did not record revenue in the fiscal year ending in March as in the previous fiscal year. However, given the size of the two parent companies, the above losses are relatively small – Sony Group and Honda Motor combined operating profits of more than 2.6 trillion yen in the latest fiscal year.
According to Tatsuo Yoshida, a senior analyst at Bloomberg Intelligence, new car development requires huge investment, including manufacturing prototypes and investing in R&D fundsLuxury carsModel sales are usually limited, so Sony Honda Mobility’s future profitability is challenging.
He said, “Although Sony Honda Mobility seems to plan to recover costs by setting high prices, it may not be able to fully cover the expenses.” ”
Representatives for Sony Honda Mobile did not immediately respond to a request for comment.
Electronics and entertainment giant Sony and automaker Honda announced a partnership in 2022 to establish an electric vehicle joint venture with Honda and Sony each holding 50% of the shares, with the goal of entering the high-end electric vehicle market by integrating Honda’s vehicle development and manufacturing capabilities with Sony’s expertise in image sensors and entertainment. Currently, the two parties are preparing to launch their first model, AFEELA, this year.
Sony Honda Mobility announced in January this year that it would sell its first sedan under the AFEELA brand through its official website and abandon the use of traditional dealer networks. The new car is expected to be built on a dedicated electric vehicle platform developed by Honda and is planned to be produced at one of Honda’s existing plants in Ohio, USA.
At this year’s International Consumer Electronics Show, Sony Honda Mobility unveiled the first model of the AFEELA brand, the AFEELA 1. The model will be available in two configuration versions, starting at $89,900 and includes a free 3-year subscription to some features and services. Currently, consumers can make reservations through the official website of AFEELA by paying a deposit of $200 (fully refundable).
