The Average Transaction Price (ATP) for new Chevy vehicles broke the $51,000 mark amid rising new-vehicle ATPs across the auto industry.
Per a recent report from vehicle valuation and automotive research company Kelley Blue Book, the ATP for new Chevy vehicles was $51,441 in October of 2021, a rise of 2.1 percent compared to September of 2021, during which the Bow Tie brand recorded an ATP of $50,399. Notably, the figure recorded in October of 2021 represents a 22.8-percent increase compared to the brand’s ATP recorded in October of 2020, during which Chevy had an ATP of $41,898.
Taken as a whole, all four of GM’s U.S. brands (Buick, Cadillac, Chevy, and GMC) recorded an ATP of $54,448 during October of 2021, a rise of 2.3 compared to an ATP of $53,211 recorded in September of 2021, and a rise of 21.4 percent compared to an ATP of $44,861 recorded in October of 2020.
More broadly speaking, the ATP for thegreater auto industry was $46,036 during October of 2021, a rise of 2 percent compared to an ATP of $45,125 recorded the month prior, and a 12.9-percent increase compared to an ATP of $40,770 recorded in October of 2020.
The rapid rise in ATPs is attributed to continuing demand and dwindling supply amid the ongoing global microchip shortage. Driving the price increase was an uptick in luxury vehicle sales, as well as an uptick for large pickups and SUVs. Incentives are also low, falling to 4.3 percent of ATP in October of 2021, as compared to 5.6 percent of ATP in September of 2021 and 9.1 percent of ATP in October of 2020. All brands studied in the latest Kelley Blue Book report reduced incentive spending month over month.
Total new vehicle sales across the auto industry increased slightly month over month in October, up 4.1 percent to 1,056,137 units. However, industry new vehicle sales were well below figures recorded last year, dropping 22.4 percent.
In response to the microchip shortage, automakers are prioritizing high-end models. That includes General Motors and Chevy, reserving available microchip supplies for its most profitable models.