January 14, 2025 – At the 2025 International Consumer Electronics Show (CES), Sony Honda Mobility, a joint venture between Sony and Honda, announced its intention to adopt a direct sales model similar to that of Tesla and Rivian for its upcoming Afeela electric vehicle. This decision, which bypasses the traditional franchised dealer network, has immediately sparked strong opposition from the National Automobile Dealers Association (NADA) in the United States.
Shugo Yamaguchi, CEO of Sony Honda Mobility USA, stated at CES, “We have chosen the direct sales model to simplify the customer experience and enhance satisfaction. The entire process, from booking to purchase, will be handled through our website.” His comment about the “hassle-free” online booking of the Afeela 1 might have inadvertently revealed the joint venture’s stance on the conventional dealership system.

NADA swiftly reacted to this announcement. Mike Stanton, NADA’s President and CEO, expressed his disappointment in a statement, saying, “While we are not surprised by Sony Honda Mobility’s direct sales plan, we are deeply disappointed. Honda should understand that any attempt to circumvent or weaken its US dealer network will face legislative and judicial challenges in various states, and NADA will fully support its dealers.” Stanton also expressed NADA’s willingness to meet with Sony Honda Mobility executives to avert “unnecessary and protracted state-level legal disputes.”
This controversy is not an isolated incident. Earlier, Scout Motors, a subsidiary of Volkswagen, faced strong opposition from US dealers for its plan to adopt a direct sales model. Scout Motors executives had argued that direct sales allow them to have complete control over “critical operational aspects, including bookings, test drives, transactions, financing, and warranty services.” However, dealer associations for Volkswagen and Audi have taken legal action and are prepared for state-level battles.
The traditional dealership system, which has been in place for decades in the US, requires new cars to be sold through franchised dealers rather than directly by car manufacturers. Dealers have long claimed that as independent franchisees, they are best suited to protect consumers from unfair pricing and provide maintenance and regionally customized services. Nevertheless, with the rise of electric vehicles, many dealers have been criticized for failing to train their sales staff to promote EVs and even steering customers towards gas-powered cars. Furthermore, dealers have been a primary voice of opposition to stricter fuel efficiency regulations aimed at promoting EV sales.
Emerging EV manufacturers like Tesla, Rivian, and Lucid have bypassed the traditional dealer system through direct sales, although state restrictions on their ability to sell directly vary. Now, traditional carmakers are also experimenting with direct sales models. For instance, Hyundai has started selling cars on Amazon, although the delivery process still involves traditional dealers, marking a significant departure from the conventional sales model.
The Afeela project seems destined to face similar challenges to Scout Motors. While the Afeela 1 will be produced at Honda’s new EV factory in Ohio and may share components with Honda’s next-generation EV series, Sony dominates the joint venture and has no ties to the existing US car dealership network. If Scout Motors succeeds in gaining direct sales rights, Afeela is likely to follow suit.
This incident signifies a new phase in US dealers’ resistance to EV sales (and online sales of any car type): they now face not only emerging players like Tesla, Rivian, and Lucid but also decades-old carmakers they have collaborated with for years. As the electric revolution continues, more such disruptive changes are expected.