TOKYO, March 25 (Reuters) - Sony Honda Mobility, the

joint venture between Japanese electronics giant Sony ( SONY )

and automaker Honda ( HMC ), on Wednesday said it would stop

developing its Afeela electric vehicles, citing Honda's ( HMC ) strategy

reassessment for EVs.

The move follows Honda's ( HMC ) move to overhaul its EV business

for which the carmaker flagged a writedown of asmuch as 2.5

trillion yen ($15.7 billion) earlier this month. The JV said the

decision left it without a viable path to bring the Afeela

models to market.

Sony Honda Mobility will issue full refunds to customers who

made reservations for what was supposed to be its first model,

the Afeela 1, in California, it said in a statement. It added

that it would continue discussions with Sony ( SONY ) and Honda ( HMC ) regarding

its future plans.

The JV had been expected to begin deliveries of the Afeela 1

in California late this year and had sought to launch a second

model based on a newer prototype as early as 2028. It began

taking orders for the Afeela 1 last year, with prices starting

at $89,900.

In a statement, Honda ( HMC ) said the impact from the move on its

revised full-year consolidated financial forecasts for the

fiscal year ending this month was expected to be immaterial.

Sony ( SONY ) said it did not expect the discontinuation to have a

material impact on its financial situation.

The venture was formed to combine Honda's ( HMC ) experience in

engineering and building vehicles with Sony's ( SONY ) software and

gaming expertise to catch up with EV rivals.

($1 = 158.8700 yen)