Sony Honda Mobility’s Plan to Sell Electric Cars Directly Faces Opposition from US Dealers

Sony Honda Mobility Afeela Image.jpg

At the 2025 International Consumer Electronics Show (CES), Sony and Honda’s joint venture company Sony Honda Mobility announced the adoption of a direct sales model for its new electric vehicle brand ‘Afeela’. The company said that it plans to sell vehicles directly to customers, bypassing the traditional franchise dealer system like Tesla and Rivian. However, this decision has sparked strong displeasure from the National Automobile Dealers Association (NADA).

Sony Honda Mobility America CEO Shugo Yamaguchi said, “We are moving to a direct sales model to make the customer experience simple and satisfactory. The entire process from booking to sales will be through our website.” The company also said that online booking of the ‘Afeela 1’ model will be completely “hassle-free”.

NADA’s Tough Stand

NADA President and CEO Mike Stanton reacted to the decision by saying, “We are not surprised by Sony Honda Mobility’s direct sales plan, but we are extremely disappointed by it. Honda should understand that any attempt to circumvent its US dealer network will face state-level legal and legislative challenges.”

NADA also made it clear that they want to avoid turning this dispute into a long and unnecessary legal struggle by talking to Sony Honda Mobility officials.

Growing Challenge in the Electric Vehicle Revolution

Afeela Car Image
Image: Afeela 1

This move of Sony and Honda is not alone. Earlier, Volkswagen subsidiary Scout Motors also faced strong objections from dealer associations for adopting a direct sales model. Scout Motors had said that the direct sales model gives them complete control over important operations including sales, financing, and warranty services.

However, the US dealer network is decades old and under the laws new vehicles should be sold through traditional franchise dealers. Dealers say that they are best suited to provide consumers with fair prices and security of service. But the growing trend of electric vehicles has weakened this argument. Many dealers have also been accused of failing to promote electric vehicles and guiding consumers towards petrol vehicles.

Big Challenge for Afeela

The Afeela 1 model will be manufactured at Honda’s new Ohio-based electric vehicle plant. However, Sony Honda Mobility has no direct connection to the dealer network. It remains to be seen whether Afeela will get direct sales rights like Scout Motors.

This decision of Sony and Honda is a new challenge for the US dealer network. Along with new players like Tesla, Rivian and Lucid, now traditional automakers have also started adopting the direct sales model. Hyundai has also started selling vehicles through Amazon, although the delivery process is completed through traditional dealers.

Future Prospects

The Afeela project has made it clear that opposition and challenges against the traditional dealer model are going to increase in the electric vehicle market. This dispute highlights the struggle not only between new players but also between decades-old automakers and their dealer networks.

This move by Sony Honda Mobility marks a major change in the future of the industry, where customer experience will be given priority.

Via

Also Read: Samsungโ€™s Harman Unveils Worldโ€™s First HDR10+ Neo QLED Screen for Cars

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