Sony and Honda introduce an Afeela EV prototype that uses Qualcomm technology

January 4 (Reuters) – Sony Corporation of Japan (6758.T) On Wednesday, it unveiled a prototype of the new Avila electric vehicles it will jointly build with Honda (7267.T)saying that it will harness its vast entertainment content as it looks forward to becoming a player in next-generation cars.

Sony gave a glimpse of the Afeela, which features rounded corners and a sleek black roof, at the technology trade show CES 2023 in Las Vegas. The vehicle will use technology from Qualcomm Inc to manufacture the hardware (QCOM.O)including the “Snapdragon” digital chassis.

Sony’s long-awaited push into electric cars — it announced the project with Honda in March — illustrates how manufacturers are increasingly focusing on the cockpit experience in cars, which offer the potential to sell content via subscription service cars, especially as self-driving capabilities improve.

“In order to achieve intelligent mobility, continuous software updates and high-performance computing are required,” Yasuhide Mizuno, CEO of Sony Honda Mobility, told the trade fair. To this end, we will work closely with Qualcomm.

Qualcomm on Wednesday launched a new processor, the Snapdragon Ride Flex SoC, that handles assistive driving and cockpit functions, including entertainment. Previously, these functions were done on different chips, and combining them could help reduce costs, a Qualcomm executive told Reuters.

Sony is also looking to harness its traditional strength in sensors. Mizuno said Avila will be equipped with more than 40 sensors. The vehicle will use the ‘Unreal Engine’ 3D creation tool from Epic Games, the maker of the ‘Fortnite’ game series.

For Honda, the project with Sony could allow it to accelerate its hitherto slow electrification. It has also struggled over the years to make gains in the luxury car market with its Acura brand. The project said that the new electric car will be priced at a premium.

The project between Sony Group Corp and Honda Motor Co Ltd aims to deliver its first electric cars by early 2026 in North America.

Sony shares rose 1.6% in Tokyo trading, while Honda shares were flat. Nikkei 225 index (.N225) little change.

(Reporting by Kiyoshi Takenaka) Additional reporting by Jin Lanhe Lee in San Francisco. Written by David Dolan. Editing by Chang Ran Kim and Muralikumar Anantharaman

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