In Depth: Hybrid Revival Gives China’s Carmakers a Leg Up on Western Rivals

When Honda Motor Co. Ltd. and Sony Group Corp. pulled the plug on their Afeela electric vehicles (EVs) in late March, it landed as the latest sign that the auto industry’s EV revolution has hit a wall.

Honda cited “changes in the business environment” as it stepped back from its electrification targets, joining a growing list of global giants that have quietly done the same. Since October 2025, General Motors Co., Ford Motor Co., Stellantis NV and Porsche AG have all slowed their shift away from internal combustion engines, taking enormous financial losses along the way.