MAJOR US DEALERS LAUNCH WAR ON NEW EV SALES MODEL
- A huge American dealer body has begun legal action against Honda And Sony over Afeela EVs.
- Sony and Honda are bypassing franchised dealers to sell direct to consumers, CNCDA argues.
- The CNCDA previously filed a lawsuit against VW and Scout Motors for violating franchise laws.
Sony and Honda are launching their new Afeela EV brand on the US market, an event which sounds like it ought to be have Honda dealers excited. And it is, but for the wrong reasons. Afeela’s controversial direct sales model means Honda and Acura dealers won’t get a chance to sell the cars, a situation that has forced a major dealer body to unleash its legal team.
The California New Car Dealers Association (CNCDA) has fired off a cease and desist letter to both American Honda and Sony Honda Mobility of America insisting the two companies immediately stop efforts to sell Afeela cars directly to consumers in the state.
Related: California Lawsuit Against Scout’s Direct Sales Could Change How You Buy Cars
Though Afeela cars aren’t yet on the street, the CNCDA alleges American Honda and Sony Honda Mobility are actively promoting the EVs and collecting deposits in preparation for sales beginning in mid 2026. And it claims those moves are prohibited under California state law.
“California law is crystal clear: automakers and their affiliates are not allowed to compete with their own franchised dealers through direct sales,” said Brian Maas, CNCDA President.
“Sony Honda’s rollout of selling Afeela vehicles directly to consumers is an unlawful effort to circumvent the state’s protections for franchisees, and we are fully prepared to take legal action to defend our Honda and Acura dealer members.”
The CNCDA has already proved it’s not shy of taking things a step further if Sony-Honda won’t climb down. Last month the organization filed a lawsuit against Volkswagen and Scout Motors, again for violating Calfornia franchise laws, after they ignored a cease and desist letter. And it claims it is “prepared to take legal action” if this latest letter doesn’t result in Sony-Honda abandoning its direct-sales strategy.
The first car to come from the Afeela brand is the Afeela 1, a $90-100k sedan designed to compete with the Lucid Air and Tesla Model S that will be built in Honda’s plant in Ohio. A 91 kWh battery should give a range of at least 300 miles (483 km), and Sony’s input guarantees plenty of tech including a digital message bar on the nose and 360-degree spatial sounds.
Photos Sony Honda Mobility
2025-05-20T19:15:56Z
