FYI: Sony Honda Mobility plans to challenge the traditional U.S. dealership model by adopting a direct-to-consumer approach for its new Afeela electric vehicles, much like Tesla and Rivian. This move is causing a stir among established automotive dealers.
Direct Sales in the Auto Industry: A Transformational Shift
In an era where direct-to-consumer models are gaining traction, automakers like Sony Honda Mobility are pushing boundaries traditionally held by established U.S. dealerships. Announced during CES 2025, Sony Honda Mobility aims to offer its Afeela electric vehicles directly to consumers via an online platform, bypassing conventional dealership networks.
A Shake-Up in Traditional Dealerships
The decision by Sony Honda Mobility has unsurprisingly drawn resistance from the National Automobile Dealers Association (NADA). NADA President Mike Stanton voiced disappointment at the initiative, warning of potential legal challenges across various states. A direct sales model, untethered from Honda’s existing dealership network, could disrupt the conventional automotive sales paradigm.
Learning from Tesla’s Playbook
The venture between Sony and Honda serves as a testament to the shifting market dynamics where consumers favor convenience and direct engagement over traditional dealership experiences. Tesla, an early proponent of direct sales, sidestepped traditional dealerships, foreseeing a lack of incentive to promote electric vehicles. Similarly, Rivian and Lucid have followed suit, though their tactics vary due to differing state regulations.
The Challenge Facing U.S. Dealers
U.S. car dealers have maintained that as independent entities, they are best positioned to serve regional consumer needs and protect against inflated pricing. However, with emerging technologies and the EV revolution, the gap between dealer expectations and market realities widens.
New Entrants and Old Challenges
Scout Motors, another player keen on direct sales, voiced concerns mirroring those of Sony Honda Mobility. According to Cody Thacker, VP of Growth at Scout, the current sales model does not incentivize dealers to fully engage with EV sales. This sentiment resonates with many in the automotive industry, who privately acknowledge but cannot publicly criticize the constraints of franchise-dependent models.
Legal Hurdles and Future Prospects
While traditional dealers, including Volkswagen and Audi’s networks, have threatened legal action, Sony Honda Mobility remains optimistic about legal victories. If Scout Motors prevails in court, it could pave the way for Afeela and others to further undermine the entrenched dealership system.
Potential Implications for the U.S. Market
The move by Sony Honda Mobility—spearheaded by Sony in close collaboration with Honda—marks a bold step into the U.S. market. Whether Ohio’s new EV hub, expected to lead much of this charge, succeeds without upsetting Honda’s existing dealer network remains to be seen. How Honda plans to align its regional dealers to embrace technologically advanced offerings like the 0 Series is still uncertain.
Conclusion
FYI: The rise of direct-to-consumer sales models by auto giants like Sony Honda Mobility signals a profound shift in how cars might be bought and sold in the U.S. in the future. This evolution seems likely to continue, echoing through legislative halls and courtroom battles across the country.
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William Kouch, Editor of Automotive.fyi
