New York is a city known for its diverse consumer base, significantly impacting the automotive industry. In the latest episode of Inside Automotive, we’re joined by Mark Schienberg, President of the Greater New York Automobile Dealers Association (GNYADA), to learn about the latest trends and challenges in the market and what the Association has planned for the upcoming year.
People in the auto industry often talk about the retail dealers’ ability to adapt to changing times. Given the current regulatory climate, the industry is undergoing noticeable changes- whether it’s the products being sold or how they are being sold. But dealers have a unique ability to adapt and overcome challenges.
1. The GNYADA has recently observed a significant increase in the number of cars on their lots. Mark Schienberg states, “Dealers have adapted to the idea of providing cars to their customers almost instantly.” As a result, sales have slightly decreased, but people who preferred not to use public transport during the pandemic and first-time buyers have started showing interest in owning a car. Schienberg added that even though sales have slowed, the demand remains very high.
2. In 2024, the legislature commenced the year with the Governor’s address. The Association was pleased to note that direct sales were not included this year, unlike last year. Manufacturers, associations, and labor groups in New York are compelling and currently support GNYADA’s stance against direct sales.
3. Additionally, the Governor’s address states that if the state fails to achieve the electrification goal by a certain year, it will allow up to ten stores to be opened by direct manufacturers.
4. Although electrification in New York is still on the rise, the sales of EVs have slowed down from the initial wave of adoption. One of the reasons for the decrease in pace could be the confusion on who is eligible for the clear-air rebate at the federal level. For instance, Hyundai offered EV buyers a $7,500 rebate despite their vehicles not being qualified by the government.
5. The New York auto show is held after Easter every year, and this year, several OEMs will be making an appearance. Infinity, Acura, and Genesis are returning to the show this year. The show is a ride-and-drive exhibit, and last year, 41% of people who attended expressed interest in driving an EV. Cadillac and Lexus were among the brands that provided this experience.
"The retail industry always changes with the products they sell and the customers they work with. That's what makes it so fascinating." - Mark Schienberg