--- title: "Sony Honda’s Direct Sales Model for Afeela EV Is Already Facing a Lawsuit" date: "2025-08-29" modified: "2025-08-29" authors: - name: "Adam Ismail" job_title: "Senior Editor" link: "https://www.thedrive.com/authors/adam-ismail" url: "https://www.thedrive.com/news/sony-hondas-direct-sales-model-for-afeela-ev-is-already-facing-a-lawsuit" categories: - "Honda News" - "News" - "News by Brand" tags: - "Electric Vehicle" - "honda" - "luxury" - "sedan" --- # Sony Honda’s Direct Sales Model for Afeela EV Is Already Facing a Lawsuit ![TOKYO, JAPAN - JANUARY 23: A prototype of Sony Honda Mobility Inc.'s Afeela electric vehicle is displayed in the Ginza Sony Park building during a media preview on January 23, 2025 in Tokyo, Japan. The building, formerly known as the Sony Building, has been reconstructed with the concept of the 'Garden of Ginza' at the heart of the Ginza shopping district. It is set to open to the public on January 26, featuring an exhibition of artworks themed around the company's six businesses, created in collaboration with six musicians as its inaugural project. (Photo by Tomohiro Ohsumi/Getty Images)]() *\Tomohiro Ohsumi/Getty Images\* About next spring is when Sony Honda Mobility expects to begin first deliveries of its [Afeela 1 electric sedan]() in California. Being the product of a joint venture between the electronics and automotive giants, it stands to reason that Afeela's vehicles sit within their own brand, apart from the legacy [Honda]() and [Acura]() marques. However, that's of little consequence to franchised dealers in the state, who have asked the Los Angeles County Superior Court to bar SHM from accepting reservations for the upcoming EV immediately due to the direct sales approach the new company has taken. "This is a direct attack on the 161 franchised Honda and Acura dealers in California that have been loyal partners in building the brand’s reputation and success for decades," California New Car Dealers Association President Brian Maas said in a statement, quoted by *[Automotive News]()*. "By cutting dealers out, they’re stripping vital consumer protections like local service support, transparent pricing, and warranty assistance." The conflict between franchisees and automakers pursuing direct sales has been raging since [Tesla]() first began making headway in the market. The difference is, Tesla wasn't an established automaker before it began selling cars directly, so it's been able to sidestep laws protecting franchises in some states. Sony Honda Mobility, on the other hand, does belong in part to a company with an existing retail network. ![]() *The Afeela 1 as it appears in *Gran Turismo 7*. *Sony Interactive Entertainment** It's not the only new car brand that's run into some legal trouble with this. [Scout Motors](), which is, [by its own admission](), "a member of the Volkswagen Group" despite being managed independently, has been [taken to court]() for its own direct sales strategy. As *Auto News* points out, a California law signed by Gov. Gavin Newsom in 2024 prohibits automotive manufacturers from starting brands that compete with their franchised dealers. In Scout's case, it's easy to understand why VW dealers might be a little peeved. [Volkswagen]() pivoted to an SUV-led lineup in the States over the last decade, but it's still not quite resonating with buyers, and Scout's rough-and-tumble, patriotic attitude and plan to sell a pickup truck—albeit an electric one—is arguably more compelling in this market. Sony Honda's situation is a little different. The Afeela 1 rides on the same platform as the other EVs that Honda is building at its Ohio facility, like the [Acura RSX]() and [Honda's 0 Series]()—cars that dealers will get to sell. On paper, it's not exactly slated to be the most technologically inspiring EV of 2026; the sedan touts a 300-mile range from a 91-kWh battery pack that has a peak charging rate of 150 kW. And, when it hits showrooms next year, it'll *start* at $102,990, with self-driving features only included for three years. A cheaper version won't come along until 2027 and, even then, it'll still cost $90K. ![08 January 2025, USA, Las Vegas: The interior of a pre-production vehicle of the first Afeela 1 model of the Afeela car brand from Sony and Honda can be seen at the CES technology trade fair. The first cars are due to be delivered to customers in the USA in 2026. Photo: Andrej Sokolow/dpa (Photo by Andrej Sokolow/picture alliance via Getty Images)]() *The interior of an Afeela 1 prototype, as seen at CES 2025 in January. *Andrej Sokolow/Getty Images** The Afeela 1 is an experiment in a few ways. Setting aside Chinese-market players like Xiaomi and Huawei, it's North America's first example of a consumer electronics company embracing the business of selling cars. And it's also gambling on a clientele out there that's waiting to pay a high price for expanded self-driving capabilities—capabilities that, even if the Afeela 1 supports, it won't be able to legally deploy at launch, assuming the law stands then as it does today. We're also talking about a sedan, something American buyers tend to be allergic to. All that is to say that I'm not sure this fight will necessarily pay off for California's Honda and Acura dealers in the way it could, say, for Volkswagen's. At the same time, from the association's perspective, it must lodge its case against as many automakers as possible to establish consistency and precedence. Meanwhile, Afeela appears to be sticking to its ramp-up plan, having opened pop-up showrooms across the state throughout the spring and summer. The first permanent retailers are slated to open their doors later this year in Torrance and Fremont, and any Californians interested can still plonk down a refundable $200 reservation right on [the company's website](). *Got tips? Send ’em to tips@thedrive.com*[]() ## Author Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()