The Honda Civic Type R is dying in Europe. But rather than mourn the badge’s demise, Honda is seemingly already looking ahead to the future, and that could very well involve electrification.

Whether the injection of electricity comes in the form of a hybrid or a full-blown EV, similar to Hyundai’s Ioniq 5N, remains to be seen. Currently, the Civic Type R is leaving European shores due to its non-conformance with the new EU mandate of the GSR2 legislation, which requires the installation of driver monitoring technology.

An Electric Future May Be On The Cards

While the FL5-generation Type R is winding down in Europe, it will continue to be available in the US and Japan for the foreseeable future. If it were to return, likely in a new generation, could it become an EV?

Read: Honda Kills Its Hottest Car In Europe But It’s Not Going Quietly

Well, while speaking to AutoExpress at the recent launch of Honda’s new Prelude, project leader Tomoyuki Yamagami hinted that the future of Type R isn’t bound to its ICE heritage. In his words, “Type R can be anything in the future, depending on what the market demands…Type R is not dependent on a turbo powertrain,” emphasizing that the essence of the badge lies in maximizing dynamic performance, not strictly in the specifics of its powertrain.

That view certainly aligns with what Honda’s BEV Center revealed at CES earlier this year. There, Toshihiro Akiwa, head of Honda’s BEV Development, elaborated on what a possible electric Type R may hold in store.

Electric motors change the equation. There’s no high-revving VTEC, no turbo spool, and none of the usual auditory cues enthusiasts associate with performance. Akiwa says the challenge is how to translate these characteristics into a thrilling driving experience that remains true to the Type R spirit: “It’s not just about power, it’s about the sound, vibration, acceleration, and human experience. These are the joys of driving.”

Next-Gen Platform Is Already in Motion

Honda’s push into electrification kicks off in earnest with two new EVs, the 0 Series saloon and midsize SUV, set for production in 2026. These will be the first of seven new models built on Honda’s next-gen electric platform.

While Type R variants of these models haven’t been officially confirmed, the platform is expected to support power outputs of up to 480 hp, leaving plenty of headroom for a future electric hot hatch to make its mark.

A decade ago, Honda and Sony partnering with each other would have resulted in a Gran Turismo concept at best. However, today it has translated into the sleek-looking Afeela Joint EV project. But there’s one problem: before even selling a single car, Sony Honda Mobility has posted an operating loss of approximately $362 million (¥52 billion).

It’s not just a matter of pre-launch development expenses either. According to recently released financial disclosures, losses more than doubled compared to last year’s ¥20.5 billion deficit, highlighting just how expensive it is to play catch-up in the premium EV market. Set to debut later this year, the Afeela will command a starting price of $89,900, a clear sign of the market positioning the joint venture targets, but also underscoring the challenges of recouping such heavy upfront investments.

A Challenging Entry

Any new car launch is going to incur losses to begin with; that’s practically a given. And with Honda and Sony’s war chest seemingly well-stocked (combined, the two Japanese companies pocketed over ¥2.6 trillion in operating profit last fiscal year), it’s unlikely that the project will put either at financial risk.

Read: Watch Sony Exec Drive Afeela EV With A PlayStation Controller

But the market Afeela will be entering won’t be without its hurdles. Analysts suggest that luxury electric vehicles, while highly attractive to premium buyers, typically come with high development costs: think extensive R&D, complex software integrations, and the pricey task of prototype building. Bloomberg Intelligence analyst Tatsuo Yoshida points out that although the high sticker price of the Afeela aims to offset these expenses, fully covering these substantial costs through sales alone might prove challenging.

Late To The Party

Adding to the complexity, the Afeela will launch into a market where Tesla, Mercedes-Benz, BMW and other established players already dominate (and that’s without mentioning the Chinese, of course…) , making Sony and Honda’s mission to carve out their own niche all the more difficult. But both companies remain confident, banking on a combination of Honda’s proven engineering expertise and Sony’s strength in software and entertainment tech to win over buyers.

Whether the Afeela becomes a hit or remains an ambitious footnote, the venture highlights one thing clearly: even for giants like Sony and Honda, the transition to electric luxury is neither cheap nor easy.