Chevy’s new vehicle inventory is slightly below the March 2023 auto industry average of 56 days supply according to research by Cox Automotive. The National Automotive Dealers Association (NADA) and most other automotive sales organizations consider a 60-day level optimal.
The report also notes Chevy’s pickup truck backlog has declined slightly, with the Chevy Silverado truck now at between 80 days and 90 days supply for March.
Silverado inventory ran in the mid-90s days supply in February after peaking at approximately 100 days supply in January. GM paused production of the Chevy Silverado and the GMC Sierra at the Fort Wayne Assembly plant starting the week of March 27th, 2023, as part of its efforts to reduce oversupply of the pickup models.
According to Cox, cheaper vehicle models continue to have limited inventory, showing higher demand for affordable new vehicles. Vehicles with prices over $50,000 had inventory at dealerships of up to 82 days supply, though sales strength in the luxury market may be indicated by the 59 days supply of over-$80,000 vehicles, very close to the market average and theoretical optimum.
The report indicates both inventory levels and sales continue to strengthen across the automotive sector after the long period of reduced supply caused by COVID-19 and the semiconductor shortage. Cox suggests higher levels of inventory are driving more sales because customers now have vehicles available to buy.
The analytical firm’s senior economist Charlie Chesbrough provided additional detail, reporting that “during March, we saw sales surpass the 1-million mark for a 30-day period for the first time since early September 2021.” He also observed that “with some brands and segments nearing too-high levels of inventories, we are seeing discounts and incentives increase.”
Dealership prices finally fell to equal MSRP in March 2023, ending a 20-month streak during which sticker prices exceeded suggested retail price, sometimes by a sizeable amount. Incentives edged upward, though the 3.2 percent of the average incentive offer remains toward the low end of historic incentive levels.
The month of March ended with almost 1.9 million new vehicles in available inventory. The number of units rose approximately 90,000 since the end of February and by 780,000 compared to new vehicle inventory in March 2022, a year-over-year jump of 70 percent.