Sony-Honda's Afeela 1 EV to be sold without traditional dealers

The Afeela 1, a jointly produced electric vehicle made by Sony and Honda, will skip traditional dealerships, being sold instead through a direct-to-consumer sales model.

Driving the news: The announcement came during a Jan. 7 press conference at CES 2025 in Las Vegas.

• Shugo Yamaguchi, CEO of the joint venture firm Sony Honda Mobility, said the decision to sell directly to buyers would make the sales process simpler while enhancing customer satisfaction.

• Reservations are already open, starting at $89,000 for the Afeela 1 Origin and $102,900 for the Signature trim.

• Sales and deliveries will begin in California, although the companies plan to expand nationally. Customers will be able to view the EVs at company-owned showrooms, which will also serve as delivery hubs.

Looking ahead: Sony Honda Mobility is targeting a 300-mile range for the Afeela sedan. Signature trims are expected to arrive in mid-2026 while the cheaper Origin trims will come in 2027.

Zooming in: Rather than using franchised dealers to offer after-sale services, Sony and Honda plan to work with other providers.

• For repair and maintenance, the joint venture has already selected Crash Champions, a third-party collision center company with a network spanning more than half the country.

Zooming out: The decision to sell directly to consumers echoes that of another company, Volkswagen’s Scout Motors, who announced its intent to avoid dealerships last Oct.

• While retailers have criticized the approach, arguing it will hurt automakers’ chances of connecting with local communities, manufacturers are looking to incorporate lessons learned from EV brands, such as Tesla, which have succeeded without traditional dealerships.

• At the same time, EV sales remain suppressed, with unaffordable price tags and limited charging networks preventing the market from growing. The luxury EV segment is also becoming more and more crowded, making it difficult for incoming brands to establish their presence.

Bottom line: Afeela’s dealer-free approach will test whether direct-to-consumer sales models can compete with franchised storefronts, all while the EV market continues to become more diluted with competing brands.

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