Following a drop from the November 2022 high of 65 days supply of new vehicle inventory, Cadillac‘s new-vehicle inventory stood at just above 60 days supply in January 2023, stable relative to the inventory level observed in December 2022.
This supply means sufficient on-site dealership inventory levels to sustain current sales volume for slightly more than the next 60 days. A 60-day level is typically considered optimal by many automotive sales organizations, including the National Automotive Dealers Association (NADA).
Overall, the U.S. supply of new vehicles stood at 57 days in January 2023 per Cox Automotive data, down from the 59 days of new-vehicle inventory carmakers had on their dealer lots in December.
Looking at the bigger picture, the gradual reduction of supply chain issues in the auto industry during 2022 and early 2023 caused inventory levels to soar year-over-year. Relative to January 2022, new-vehicle inventory surged by 65 percent last month. However, it has not yet climbed back to average pre-pandemic levels. Automakers had inventory levels amounting to 95 days supply at the end of January 2019.
Supply levels varied considerably between makes, models, and brands. Inventory level in days supply showed correlation with both vehicle price and vehicle type. Thriftier patterns of consumption encouraged by high interest rates, and little to no incentives caused a move toward buying cheaper vehicles, leaving pricier models more likely to remain sitting on lots for longer periods of time. As a notable exception, SUVs also showed higher sales volume through lower days supply than their size and price would suggest.
Vehicles priced under $20,000 averaged 31 days supply in January, almost half the average supply of vehicles in the automotive market in general. They consisted chiefly of subcompact, compact, and midsize cars. As might be expected in this sales environment, larger, more expensive vehicle models built up higher than average inventory levels.
Vehicles priced between $50,000 and $80,000 usually had more than 70 days supply at dealerships in late January. Electric vehicles and full-size pickup trucks also tended see expanding inventories. New vehicles from the Jeep brand had the month’s highest inventory levels at 123 days supply.
Zooming in on the sector where many of Cadillac’s sales occur, luxury vehicles bucked the overall trend toward cheaper vehicles on average. New vehicle inventories stood at 53 days supply for January, reflected in luxury brands setting a record by achieving nearly 20 percent sales share during the month.