CNCDA Demands Sony Honda Immediately Cease Illegal Sales of Afeela Vehicles in California
SACRAMENTO, CA, May 19, 2025— Today, the California New Car Dealers Association (CNCDA) issued a cease-and-desist letter to American Honda Motor Co. (American Honda) and Sony Honda Mobility of America (SHMA) to immediately halt direct sales of Afeela brand vehicles to California consumers, which directly violates existing state franchise laws.
Currently, SHMA and American Honda are marketing and taking deposits from California residents for Afeela vehicles, thus bypassing Honda and Acura dealers entirely, cutting them out of a fair opportunity to sell or lease the vehicles. California Vehicle Code Section 11713.3(o) prohibits manufacturers and their affiliates from competing with their own franchisees by engaging in direct-to-consumer sales.
In the letter, CNCDA demands an immediate halt to all marketing and deposit-taking activities by SHMA and American Honda for California residents. Both manufacturers are under common ownership under Honda Motor Co., Ltd. SHMA has stated that all Afeela vehicles will be assembled in the United States at a Honda-owned Ohio factory that also manufactures vehicles for American Honda, including those sold under the Honda and Acura brands.
“California law is crystal clear. Automakers and their affiliates are not allowed to compete with their own franchised dealers through direct sales,” said Brian Maas, CNCDA President. “Sony Honda’s rollout of selling Afeela vehicles directly to consumers is an unlawful effort to circumvent the state’s protections for franchisees, and we are fully prepared to take legal action to defend our Honda and Acura dealer members.”
SHMA and American Honda demonstrated full awareness of Assembly Bill 473 (a CNCDA-sponsored law unanimously enacted by the California Legislature and signed by Governor Gavin Newsom) with their formal opposition during the bill’s legislative process. AB 473, which took effect on January 1, 2024, explicitly prohibits manufacturers from selling vehicles directly through affiliated entities. Honda and SHMA are in direct violation of the law as they sell Afeela vehicles without including their franchised Honda and Acura dealer partners.
In April of this year, CNCDA filed a lawsuit against Volkswagen and Scout Motors for also violating California’s franchise laws. This lawsuit followed a similar Cease and Desist letter issued to Volkswagen in December 2024. The lawsuit similarly alleges unfair competition and false advertising via illegal direct sales and calls for civil penalties that could exceed $35 million.
CNCDA remains steadfast in ensuring California law is followed and franchised dealers are protected. The association is prepared to take legal action should this letter not result in the immediate cessation of direct sales of Afeela vehicles by SHMA and American Honda.
Read the Cease-and-Desist Letter to Sony Honda here.
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About CNCDA
For over 100 years, the California New Car Dealers Association has represented California’s franchised new car and truck dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles and provide automotive products, parts, services, and repairs.
In 2024, California’s franchised new car dealers sold more than 1.85 million new and used cars and trucks, employed more than 138,478 people, paid $8.83 billion in sales tax, and donated $70.75 million to charitable and civic organizations. CNCDA is the Nation’s largest state association of franchised automotive dealers, with nearly 1,200 members, and provides legal compliance and legislative, regulatory, and legal advocacy.