Sony Honda Mobility’s direct sales model for its Afeela 1 electric sedan is already facing legal action. The manufacturer, a joint venture between electronics and automotive giants, plans to begin initial deliveries of its vehicle in California next spring. However, this disruptive business approach is not sitting well with the state’s authorized dealerships.
A Direct Attack on the Dealership Network
The California New Car Dealers Association (CNCDA) has asked the Los Angeles County Superior Court to prohibit SHM from accepting reservations for the future electric vehicle. “This is a direct attack on the 161 franchised Honda and Acura dealerships in California that have been loyal partners in building the brand’s reputation and success for decades,” said Brian Maas, president of the CNCDA.
A Recurring Legal Conflict in the Automotive Industry
The conflict between franchisees and automakers favoring direct sales has been raging since Tesla began breaking into the market. The crucial difference is that Tesla was not an established automaker before selling its cars directly, allowing it to bypass certain laws. Sony Honda Mobility is partly owned by Honda, a company with an existing distribution network.
Scout Motors, a Revealing Precedent
This situation is not without precedent. Scout Motors, a member of the Volkswagen Group, was also sued for its direct sales strategy. A California law signed in 2024 by Governor Gavin Newsom even prohibits automakers from creating brands that compete with their franchised dealerships.
The Afeela 1: A High-Risk Experiment
The Afeela 1 represents an experiment in several ways. It is the first example in North America of a consumer electronics company venturing into car sales. The vehicle, based on the same platform as Honda’s other electric models, targets customers willing to pay a premium for extensive autonomous driving capabilities, although these are not legally deployable at launch.
Scheduled for 2026, the sedan boasts an announced range of 300 miles (approximately 480 km) and a starting price of $102,990. Despite the legal disputes, Afeela appears to be proceeding with its deployment plan, with the opening of pop-up showrooms and permanent sales points planned this year in California.