The automotive industry is slowly recovering from the COVID-19 pandemic, which had a negative impact on production and subsequent vehicle inventory. When business began to ramp back up, a disconnect emerged between the availability of new vehicles (supply) and demand, resulting in low inventory and sky-high prices. Now, GMC new vehicle inventory has recovered to 65 days supply as of November 2022.
A 65 day supply means that dealerships have enough inventory on-site to sustain current sales volume for the next 65 days. As a reference, a 60-day supply was considered optimal in the U.S. auto industry prior to the COVID-19 pandemic.
According to a report from Cox Automotive, industry-wide inventory is on the rise, and is currently reaching it’s highest levels since May 2021. In fact, the supply of new vehicles was up 81 percent in November 2022 when compared to the same timeframe last year. However, it’s worth noting that while inventory is on an upward trajectory, it remains low in a historical regard, where pre-pandemic records reflect an 86 days supply as the norm. This supply level provides a good balance of consumer choice while keeping inventory costs low.
“Timing is everything,” Cox Automotive’s senior economist Charlie Chesbrough said. “Production is finally ramping up after being stymied by the chip shortage just as demand started to waiver and vehicle sales slowed down.”
This trend bodes well for future GMC products, as Big Red is set to launch a mid-cycle refresh of the GMC Sierra HD lineup, as well as an all-new, third-generation GMC Canyon, followed by the next-gen GMC Acadia all during the next 13 months.