Sony Honda Mobility Inc, the electric vehicle joint venture between Sony Group Corporation and Honda Motor Company, has reported an operating loss of ¥52 billion (approximately US$362 million or RM1.5 billion) for the fiscal year ended March. This figure more than doubles the previous year’s loss of ¥20.5 billion, highlighting the mounting costs associated with bringing their inaugural EV, the Afeela, to market.
The loss was disclosed in the company’s annual financial report released on Monday. The venture, which was formally launched in 2022, aims to penetrate the premium electric vehicle segment by leveraging Honda’s automotive engineering and manufacturing strengths in tandem with Sony’s expertise in imaging sensors and digital entertainment technologies.
Despite the lack of revenue—attributable to the fact that no vehicles have yet been sold—both parent companies remain financially robust. Combined, Sony and Honda reported operating profits exceeding ¥2.6 trillion in the latest fiscal year, underscoring their capacity to absorb early-stage losses incurred by the venture.
The Afeela, positioned as a high-end EV, is expected to hit the market later this year with a starting price of US$89,900. However, analysts caution that profitability may remain elusive, particularly in a market segment with inherently limited volumes and elevated R&D expenditure.
“Although Sony Honda Mobility seems to be setting higher prices to recover costs, they may not be able to fully offset expenses,” said Tatsuo Yoshida, Senior Analyst at Bloomberg Intelligence. He noted the significant outlays required for prototype development and innovation, which are common challenges in new vehicle production.
Sony Honda Mobility has yet to issue a public comment on the financial results.
-Bloomberg
