Legislation to let Volkswagen-backed Scout Motors sell its electric SUVs directly to people in South Carolina, where the vehicles will be built, has stalled after fierce opposition from traditional automobile dealers.

Scout Motors' plan to eschew traditional dealerships and sell EVs directly to consumers is running into legal trouble. A group of Volkswagen and Audi

Scout Motors' bid to sell vehicles directly to consumers faces stiff headwinds in the South Carolina House of Representatives amid pushback from auto dealers.

South Carolina is one of about two dozen states that ban manufacturers from selling vehicles directly to consumers and instead require all new autos be purchased through a dealer. Scout would like to see that practice changed nationwide for all EV makers and figured it could start in its new backyard.

Plenty of potential car buyers would love to shop for a new vehicle online without needing to stop at a dealership, and automakers have not been shy about their desire to provide that service, but local and federal dealer franchise laws in the U.