- Honda and Sony will sell Afeela EVs directly to buyers only.
- Dealers say Afeela pulls funding from core Honda models.
- Lawsuit claims Afeela’s sales model breaks California law.
As Honda doubles down on its electric dreams, tensions are rising inside its own retail network. Honda dealerships are pushing back against the company’s joint EV venture with Sony, arguing that it’s siphoning attention and resources away from the core Honda and Acura lines, especially at a time when EV demand has begun to cool. The company, however, appears unmoved.
Sony Honda Mobility unveiled its near production-ready Afeela 1 electric sedan at this year’s Consumer Electronics Show, preparing it for a limited launch in California in late 2026. Alongside the sedan, the company also teased a second model, a crossover still in development.
Read: After A $90K Sedan, Sony Honda Thinks What America Needs Now Is Another Pricey Electric SUV
Honda will manage all direct sales, vehicle deliveries, and servicing for the Afeela lineup, and will also collaborate with independent repair providers to support ownership beyond the showroom.
Dealers Push Back on Direct Sales
This has rubbed many dealers the wrong way. In August last year, the California New Car Dealers Association filed a lawsuit against Honda and Sony, claiming the direct-sales strategy is illegal under the California Vehicle Code.
Sony Honda Mobility has countered, maintaining that it operates as a separate business entity, and therefore isn’t bound to use Honda’s existing dealership infrastructure.
“While we understand the intent may be to target a different, tech-savvy customer segment, we see no compelling reason to bypass the established dealer network that has supported the brand for decades,” Bill Feinstein, the chairman of the Honda Dealer Advisory Board, told Auto News.
Honda says it has been “clear and transparent” with dealers that they will not be involved in the sale or distribution of the Afeela models.
A Hard Sell?
Feinstein didn’t stop there. “It’s really hard to understand how a premium electric vehicle priced at $90,000-plus makes sense with EV demand softening, high interest rates and intense price competition,” he said.
He also voiced concerns about the broader impact on the business. “We’re deeply worried about the ongoing drain on financial and engineering resources. Every dollar spent in Afeela’s R&D, manufacturing and marketing is a dollar not spent on core Honda and Acura products, where we see greater potential for volume growth and profitability.”
Despite the resistance, Sony Honda Mobility isn’t phased. At last week’s CES in Las Vegas, the joint venture unveiled a prototype of its next model, an all-electric SUV that shares much of its design language with the sedan. The company says this new model could hit the US market as early as 2028
