Albany Times Union

Direct sale of electric vehicles is the right choice

- By Anne Reynolds ▶ Anne Reynolds is the executive director of the Alliance for Clean Energy NY.

For nearly a decade, a controvers­y has raged in New York over whether to allow direct sales of electric vehicles (EVS).

A 2014 agreement between Tesla and the state allowed the Ev-only manufactur­er five stores, but capped the number of locations and prevented other new manufactur­ers from doing the same.

This year, a coalition including Tesla, other new Evonly manufactur­ers, more than 100 environmen­tal groups, and a range of other public-interest advocates are united in fighting for direct sales in New York.

There is only one entity opposed to direct sales: New York’s auto dealers. They argue that new automakers need to play by the rules — rules that they themselves created after Tesla entered the market.

Dealership­s believe that all new cars need to be sold through a middleman, even though the Federal Trade Commission and other consumer advocates see no need for this protection­ism. They also argue that jobs will be lost if dealership­s coexist alongside direct sales. But data from the National Auto Dealers Associatio­n shows that this is not the case. Since Tesla entered the market in 2012, dealership sales nationwide have increased by 52 percent and employment grew by 18 percent. In open states, sales and employment overperfor­med, while closed states underperfo­rmed the national average on both metrics, with 29 perent sales growth and 12 percent employment growth. Dealership­s have thrived alongside some healthy competitio­n.

There is also the important matter of New York’s climate goals and EV adoption rates: New York is only 3 percent of the way towards its goal of 800,000 electric vehicles by 2025. Embracing direct sales is the way to make up for lost time. In 2020, New York’s nearly 1,000 franchised dealership­s collective­ly sold 1,896 EVS, totaling .2 percent of total cars sales and fewer than 2 EVS sold per dealership in an entire year. By comparison, Tesla alone sold 9,433 vehicles – almost five time the amount of all franchised dealers combined, from just five locations.

Direct sales are right for New York’s climate goals, for motorists, for the state’s economy, and for healthy competitio­n. 2021 is the year to end this controvers­y for good.

Newspapers in English

Newspapers from United States