The average transaction price for a GMC truck, SUV or crossover increased by just over three percent year-over-year in July as demand for the premium manufacturer’s products held steady.
The average price paid for a new GMC vehicle stood at $60,422 in August 2022, according to Kelley Blue Book, which was up 3.5 percent from the same time period last year and up 4.1 percent from $58,057 in August 2021.
The GMC brand saw strong ATPs throughout 2022 due to demand for full-size trucks like the GMC Sierra and full-size SUVs like the GMC Yukon, but also because GM is building more fully loaded units. The arrival of the high-priced 2022 GMC Hummer EV Pickup Edition 1, which starts at over $110,000, has likely also contributed to higher ATPs for the brand.
In addition to the GMC Hummer EV, the premium brand has also seen strong demand for well-equipped models from its AT4, Denali and new AT4X trim level ranges recently. It will add more high-end models in 2023 with the introduction of the GMC Canyon AT4X, as well as the new GMC Sierra AT4X AEV Edition. While pricing for those two vehicles has not yet been announced, these off-road-focused trims are positioned as the range-topping models in the trucks’ two respective lineups.
Looking further into the future, the GMC brand will follow in the footsteps of Chevy and introduce a battery-electric pickup in the way of the GMC Sierra EV, which is expected to launch in the pricy Denali trim level. More information on the GMC Sierra EV pickup, which will share a platform and other key components with the 2024 Chevy Silverado EV, is expected to be divulged later this year.
Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive, said the unprecedented rise in new vehicle ATPs can be attributed to the industry’s low production output at the moment, which has been driven by the chip shortage and other supply shortages. With fewer vehicles on lots, automakers like GMC are prioritizing nameplates with strong margins to offset dwindling sales figures. For the GM-owned brand, this could mean stocking more GMC Yukon and Sierra models, along with more AT4 and Denali trim vehicles.
“Prices are still high and climbing incrementally every month,” Rydzewski explained. “New-vehicle inventory levels have been rising through August, now reaching the highest level since June 2021. However, supply of popular segments – like subcompacts, hybrids and EVs – still remain very low. Automakers are focusing on building and selling high-margin vehicles. Essentially, the product mix is the primary factor keeping prices high.”