While Sony is growing vigorously in India with gaming and consumer electronics, the electric car joint venture with Honda is bleeding massively money. The Afeela brand could turn out to be an expensive misinvestment-but the Japanese company does not give up.
Losses explode
The numbers are alarming: Sony Honda Mobility posted an operational loss of the equivalent of 300 million euros in the past financial year – more than twice as high as in the previous year. The reason? The horrendous development costs for the first electric car of the joint venture, the high-priced Afeela, which is due to come onto the market at the end of 2025.
So far only costs, zero income. A typical problem in the capital-intensive electric car sector, where even established players like Tesla or Rivian fight with profitability. But with a starting price of over 80,000 euros for the Afeela, the question arises: Who should buy this car – and is it enough to ever record the billion dollar investments?
India as a lifeline
While the e-car adventure becomes a stress test, Sony shines in the emerging Indian market. With gaming consoles, consumer electronics and medical technology, the group recently achieved an increase in sales of over 20 percent.
The Playstation division in particular is growing rapidly-it quadrupled its sales in India within three years. No wonder that Sony is now one of its four most important markets worldwide. By 2027, the group even aimed at the magical limit of one billion euros in sales.
Two stories, one group
Sony is on a crossroads: While the core business is booming with consumer electronics and gaming, the prestige project with Honda threatens to become a financial disaster. The share is slightly noted in the minus, but the real problems are somewhere else-when it comes to whether the expensive excursion to e-mobility will ever pay off.
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