Chevy incentive spending fell more than 48 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 Chevy vehicle sold in the U.S. in Q3 2022 stood at $1,416 per vehicle, which was down from $2,726 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, Chevy sales actually increased 30 percent from 284,045 units in Q3 2021 to 369,269 units in Q3 2022.
Sales Results - Q3 2022 - USA - Chevrolet
| MODEL | Q3 2022 / Q3 2021 | Q3 2022 | Q3 2021 | YTD 2022 / YTD 2021 | YTD 2022 | YTD 2021 |
|---|---|---|---|---|---|---|
| BLAZER | +67.03% | 17,511 | 10,484 | +0.55% | 50,615 | 50,339 |
| BOLT EUV | +377.53% | 11,179 | 2,341 | +476.96% | 15,849 | 2,747 |
| BOLT EV | +62.37% | 3,530 | 2,174 | -72.06% | 6,163 | 22,056 |
| CAMARO | +52.26% | 7,922 | 5,203 | +27.13% | 19,177 | 15,084 |
| COLORADO | +92.23% | 24,405 | 12,696 | +33.05% | 68,595 | 51,555 |
| CORVETTE | -21.91% | 7,939 | 10,166 | +2.55% | 25,380 | 24,748 |
| EQUINOX | +43.77% | 46,646 | 32,444 | +8.08% | 163,324 | 151,110 |
| EXPRESS | +109.23% | 14,981 | 7,160 | -0.17% | 36,528 | 36,589 |
| LOW CAB FORWARD | -17.97% | 1,369 | 1,669 | +2.20% | 4,232 | 4,141 |
| MALIBU | +7,940.59% | 21,630 | 269 | +148.17% | 79,799 | 32,155 |
| SILVERADO | -4.77% | 117,198 | 123,067 | -7.98% | 381,337 | 414,389 |
| SPARK | +67.77% | 6,288 | 3,748 | -54.68% | 10,426 | 23,007 |
| SUBURBAN | +40.53% | 13,585 | 9,667 | +2.12% | 34,906 | 34,183 |
| TAHOE | +22.24% | 29,585 | 24,202 | -0.69% | 74,633 | 75,148 |
| TRAILBLAZER | -31.89% | 17,388 | 25,531 | -43.26% | 41,932 | 73,898 |
| TRAVERSE | +135.79% | 25,388 | 10,767 | -26.01% | 69,694 | 94,198 |
| TRAX | +1.12% | 6,329 | 6,259 | -47.02% | 21,882 | 41,306 |
| CHEVROLET TOTAL | +29.50% | 372,873 | 287,925 | -3.88% | 1,104,488 | 1,149,030 |
Sales of the Chevy Malibu launched to the moon, posting an almost 8,000 percent increase to 21,630 units sold in Q3 2022. Not far behind was the Chevy Bolt EUV, which saw a still-massive 378 percent increase to 11,179 units in Q3 2022. In fact, most Chevy products posted an increase in sales, except the Trailblazer and Silverado. The Trailblazer and Silverado posted a decrease of 32 and five percent to 17,388 and 114,963 units sold, respectively, in Q3 2022.
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 stood at $1,048 per vehicle in Q3 2022, down 64 percent from the same time period last year. It was a similar scenario over at Buick and Cadillac, with incentive spending averaging $964 and $2,086 per vehicle, down more than 76 percent and almost 57 percent, respectively, from Q3 2022.
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.
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Comment
So I see incentives values actually increasing so this is accounted for units that the incentives don’t qualify for?