New-vehicle inventory levels continue to climb, as Chevy inventory has risen from just under a 60 days supply in November 2022 to just over the 60-day supply mark in December 2022.
This means that Chevy dealers currently have sufficient inventory to meet consumer demand. In particular, the Chevy Silverado was among the brand’s most stocked vehicle, which is great news given that the truck line is also the brand’s best-selling nameplate.
“New-vehicle inventory climbed through December, nearing what used to be considered ‘normal’ levels in the pre-pandemic era,” Cox Automotive senior economist Charlie Chesbrough was quoted as saying in a recent report. “Days of supply at the end of December increased due to production and supply improvements. But sales barely budged.”
As a reminder, a 60-day supply was considered optimal in the U.S. auto industry prior to the COVID-19 pandemic. More specifically, a 60 day inventory level means that dealerships have enough inventory on-site to sustain current sales volume for roughly the next 60 days.
According to Cox Automotive, industry-wide inventory is on the rise and is currently reaching its highest levels since March 2021, as supply levels rose from 1.62 million vehicles in November 2022 to 1.80 million vehicles in December 2022. In fact, December 2022 inventory levels are up 65 percent from December 2021 levels, yet still remain at historic lows. This presents a compelling arguments for automakers, including GM, to begin offering more incentives to improve sales figures.
“While new-vehicle supply rose 37 percent since September and is 66 percent above a year ago, the sales pace at the end of December had improved by a scant 2 percent,” said Chesbrough. “If this trend continues – and it seems likely to do so – automakers will be under heavy pressure to move the metal with higher incentives. This will be the story to watch for in the first part of 2023 – automakers returning to discounting.”
It’s worth noting that Chevy has a variety of new products in the pipeline, including:
- 2023 Chevy Colorado
- 2024 Chevy Trax
- 2024 Chevy Silverado HD
- 2024 Chevy Silverado EV
- 2024 Chevy Blazer EV
- 2024 Chevy Equinox EV
- 2024 Chevy Tahoe
- 2024 Chevy Suburban
- 2024 Chevy Traverse
All of these models will introduce an all-new generation or a mid-cycle refresh, thereby likely resulting in higher consumer interest and associated demand.