Georgia automotive dealers report strong market growth and shifting vehicle preferences for 2024

The Georgia government meeting on March 11, 2025, focused on the state of small business development, particularly in the automotive industry. Key discussions revolved around Senate Bill 81, which aims to update franchise laws in alignment with practices from other states. The Georgia Automobile Dealers Association (GADA) emphasized the importance of collaboration with manufacturers to ensure fair regulations that benefit dealers and consumers alike.

The meeting highlighted a positive outlook for the automotive market, with 16 million new vehicle units sold in 2024, indicating strong customer demand and a robust economy. This figure is seen as a benchmark for industry health, reflecting both demand and supply stability. The GADA noted a significant increase in hybrid vehicle sales, which rose by 31% compared to the previous year, while battery electric vehicle sales saw a modest increase of 0.8%. Despite Tesla remaining a market leader, its sales decreased, suggesting that traditional manufacturers are gaining ground in the electric vehicle sector.

In Georgia, new vehicle sales increased by 1.6% in 2024, with internal combustion engine vehicles still dominating the market at 82%. However, the share of these vehicles has decreased from 85% in the previous year, indicating a gradual shift towards alternative powertrains. The GADA reported that hybrids now account for 10% of sales, while battery electric vehicles hold a steady 7.2%.

Looking ahead, dealers expressed optimism for 2025, although they acknowledged challenges such as vehicle affordability and potential geopolitical issues, including tariffs and competition from Chinese automotive manufacturers. The average transaction price for new vehicles remains high, though it has decreased from pandemic levels. The GADA is hopeful for the introduction of more affordable models in the near future.

Overall, the meeting underscored the resilience of Georgia's automotive market and the ongoing efforts to adapt to changing consumer preferences and economic conditions.