Decline in the US electric vehicle market: Honda and Sony projects halted

The US electric vehicle market is undergoing significant changes: major auto giants are rethinking their electrification strategies and abandoning a number of promising models. In particular, Honda has decided to stop production of the Honda Prologue, its latest all-electric vehicle in the US portfolio. This decision marks not just the end of a single model, but a retreat of the entire industry from the American market. This is reported by Techcrunch.com reports .

According to TechCrunch, this trend is in sharp contrast to the situation in the global market. Several factors are contributing to the decline in EV sales in the US, including the cancellation of $7500 federal tax credits, rising tariffs, and shifting consumer preferences. Data from Kelley Blue Book and Cox Automotive shows that in the second quarter of 2026, electric vehicles accounted for only 5.8 percent of the total market.

The fate of the Afeela project, a partnership between Sony and Honda

One of the most high-profile pieces of news was the discontinuation of the Afeela brand, created in partnership between Sony and Honda. Initially introduced as the Vision S prototype at CES 2020, this project had generated great interest in the technology world. The two Japanese conglomerates joined forces with the goal of creating a high-tech, intelligent electric vehicle, but by March 2026, the joint venture announced it was abandoning the two models under the Afeela brand.

Honda is cutting not only joint projects but also its own independent plans. The company has canceled three new electric vehicle models intended for the US market. This list includes a mid-size SUV that was showcased at CES 2025 and expected to be produced at the "EV Hub" plant in Ohio. The previously announced futuristic Saloon and Space-Hub concepts have also been postponed indefinitely.

General market situation and signs of recovery

The decline in the EV market is clearly visible in the numbers. For example, sales in the fourth quarter of 2025 were 36 percent lower than in the same period of 2024. In the second quarter of 2026, sales volume decreased by 20.5 percent compared to the same period last year. Nevertheless, experts note that there are signs of a gradual recovery in the market, as the gap in sales volume is narrowing.

Although many models are leaving the market, new entrants have not yet given up hope. For example, new models like the Rivian R2 are entering the American market. However, the strategic retreat of traditional manufacturers like Honda indicates that the choice of electric vehicles in the US will significantly decrease in the coming years. This situation serves as a unique signal for markets where electric vehicles are gaining popularity, such as Uzbekistan, showing that the priorities of global manufacturers are shifting.