GMC incentive spending fell more than 64 percent in Q3 2022 on a year-over-year basis, amid high demand and tight inventories.
According a Cox Automotive report (PDF), the average incentive offered on a GMC vehicle sold in the U.S. in Q3 2022 stood at $1,048 per vehicle, which was down from $2,935 per vehicle in Q3 2021. The average incentive spending across all four of GM brands in the third quarter of this year stood at $1,353 per vehicle.
Despite the trend of ever-diminishing incentives, GMC sales actually increased 24 percent from 97,254 units in Q3 2021 to 120,512 units in Q3 2022.
Sales Results - Q3 2022 - USA - GMC
|MODEL||Q3 2022 / Q3 2021||Q3 2022||Q3 2021||YTD 2022 / YTD 2021||YTD 2022||YTD 2021|
|HUMMER EV PICKUP||*||411||*||*||782||0|
Sales of the GMC Terrain soared a massive 81 percent to 17,917 units in Q3 2022. In fact, almost all GMC models saw an increase in sales from Q3 2021, except the GMC Sierra, which saw sales fall almost five percent to 50,169 units sold in Q3 2022. The GMC Hummer EV Pickup saw 411 deliveries.
Overall, total GM Q3 2022 sales in the United States – which include Chevrolet, Buick, GMC and Cadillac – increased almost 25 percent to 555,580 units. That’s still far behind GM Q3 2020 sales of 665,192 units. The semiconductor chip shortage had yet to fully take hold in Q3 2020, which is the main reason behind the large year-over-year decrease in sales volume between Q3 2020 and Q3 2021.
The average incentive spending for GMC’s companion brand, Buick, stood at $964 per vehicle in Q3 2022, down 76 percent from the same time period last year. It was a similar scenario over at Chevy and Cadillac, with incentive spending averaging $1,416 and $2,086 per vehicle, down more than 48 percent and almost 57 percent, respectively, from Q3 2021.
Incentive spending will likely continue at its currently low pace for the rest of the year as inventory remains tight as a result of ongoing supply chain disruptions and material shortages. However, incentives should begin to climb as production constraints ease and the inventory situation improves.