They didn't say O2 is in abundant. In fact, the cars are idling
so how can there be a lot of O2?
NO has a higher tendency to react with O2 in oxygen-rich
environment.
The high concentration of NO from the exhaust pipe is therefore
converted to NO2 in the atmosphere.
Given NO is the majority NOx group formed in idling engines,
that should be the case. Combustion at varying levels of oxygen
concentration yields various compositions of the NOx
constituents.
Excess air will form more of the other types of nitrous oxides,
and therefore less NO2 will form.