At a time when much of the U.S. auto industry is reassessing its electric vehicle strategies, Sony Honda Mobility used the CES trade show in Las Vegas to signal that it is pressing ahead with its EV ambitions. The joint venture on Monday revealed an updated prototype of its Afeela electric vehicle, standing out at an event where many automakers chose to sit on the sidelines.

Chief Executive Yasuhide Mizuno said the company is targeting U.S. customers for a production model derived from the Afeela prototype as early as 2028. In the nearer term, Sony Honda Mobility plans to begin deliveries of the Afeela 1—its first production EV—to customers in California toward the end of this year.

The Afeela 1, first introduced last year, carries a starting price of $89,900, positioning it firmly in the premium segment of the EV market. The vehicle reflects the joint venture’s strategy of blending Honda’s long-standing engineering and manufacturing capabilities with Sony’s strengths in software, sensors and entertainment technologies.

The unveiling was a relatively rare moment of EV optimism at CES 2026. Many established automakers have scaled back or delayed electric vehicle programs in response to softer consumer demand, rising costs and new tariffs affecting imported vehicles and parts. Several companies have cancelled planned EV launches or paused production altogether.

Policy shifts in Washington have also weighed on the market. The Trump administration has rolled back a number of EV-friendly measures, including the removal of a $7,500 federal tax credit, a change that has dampened consumer interest in electric cars.

Sony Honda Mobility was formed in 2022 with the goal of taking on established and emerging EV rivals by offering technology-heavy vehicles that emphasize connectivity, automation and in-car entertainment. Despite broader industry headwinds, the company’s latest CES appearance underscores its intent to stay the course in an increasingly uncertain EV landscape.