The optimal supply figure for the U.S. auto industry is generally considered to be 60 days, so it appears that demand for the Trax is slightly ahead of supply. Inventories well lower than the optimal 60 days are par course for the current automotive manufacturing and supply climate. However, the Trax figure is growing, which suggests that demand is starting to fall.
Sales Results - Q1 2021 - USA - Chevrolet
|MODEL||Q1 2021 / Q1 2020||Q1 2021||Q1 2020|
|LOW CAB FORWARD||+10.38%||957||867|
This is supported by the fact that Trax sales in Q1 of 2021 in the United States were 40 percent lower than they were in the same period in 2020, at 16,955 units. This could be blamed partly on the COVID-19 pandemic, but no other Chevy currently in production has experienced such a decline in sales during the same timeframe.
The Chevy Trax faces strong opposition not only within General Motors but within the Chevrolet brand. The all-new Chevy Trailblazer, which made its debut in 2020, is a rival to the Trax in the mainstream subcompact crossover segment, though the two vehicles occupy slightly different positions.
The subcompact CUV segment is starting to fragment into two distinct channels. The Trax occupies the lower price space, where the average transaction price is around $18,000, and is competing against the Ford EcoSport and Nissan Kicks. The Trailblazer is in the premium space, where the ATP is considerably higher at $23,000 and the opposition includes the Honda HR-V, Jeep Renegade, Jeep Compass, and Toyota C-HR.
The Trax is therefore the more affordable of the two vehicles based on purchase price alone, though not necessarily on the starting MSRPs – which shows the Trax as having a starting price of $21,400 to the Trailblazer’s $19,000, both before incentives, rebates, discounts, or other promotions. Not only did GM cut the price of the all-wheel-drive versions last summer, it has also offered several further incentives to customers, most recently a 17 percent discount which will be in force until May 3rd.
However, despite the greater financial appeal of the Trax, the 2021 Chevy Trailblazer is proving to be more popular. Its 2021 Q1 sales amounted to 25,024 units – some way short of the Trax’s 28,242 of Q1 in 2020, but much better than its performance during Q1 2021.
In fact, although General Motors no longer publicizes sales figures for individual months, GM Authority has learned that around 11,000 units of the Trailblazer were sold in March alone. It has taken three times as long for the Trax to find 50 percent more buyers than that.
In the circumstances, it makes sense that GM plans to cut Chevy Trax production by 30 percent in 2021, and to devote all the freed-up capacity to manufacturing more units of the much more in-demand Trailblazer instead.