Major US auto dealers begin fight against new electric vehicle sales scheme

Scandal over Afeela electric vehicle sales

The California New Car Dealers Association (CNCDA) has initiated legal action against Honda and Sony over their Afeela electric vehicle brand. The issue lies in the companies’ plans to sell these vehicles directly to customers, bypassing official dealers. This has caused outrage among Honda and Acura dealer networks.

CNCDA has already sent an official warning to American Honda and Sony Honda Mobility, demanding an end to direct vehicle sales in California. Although Afeela vehicles are not yet on the market, the association claims the companies are already engaging customers by collecting pre-orders, which violates local laws.

“California law explicitly prohibits manufacturers from competing with their own dealers through direct sales,” stated Brian Maas, president of CNCDA.

Previous legal disputes

This is not the first time CNCDA has resorted to lawsuits. Recently, the organization filed lawsuits against Volkswagen and Scout Motors for similar violations. If Sony and Honda do not change their strategy, the association is prepared to sue them as well.

The first model of the Afeela brand will be a sedan priced at $90-100K, competing with the Lucid Air and Tesla Model S. The vehicle will be equipped with a 91 kWh battery, providing a range of over 300 miles. Thanks to Sony’s involvement, the model will feature advanced technologies, including a digital message display on the front and immersive sound.

Afeela production will begin at Honda’s Ohio plant in 2026. However, if the conflict with dealers is not resolved, the sales of these electric vehicles could face significant obstacles. The direct sales model is becoming increasingly popular among manufacturers, but it continues to face resistance from traditional dealer networks, which protect their interests through legislation.

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