GMC new vehicle inventory ran at over 60 days supply in June 2023, above the 53 days supply average across the U.S. auto market at a whole. However, these numbers of new vehicles at GMC dealerships are lower than the approximately 70 days supply Big Red was running at in both February and March.
The GMC June inventory level reported by Cox Automotive is roughly on par with the 60 days supply considered to be the optimum level by the National Automotive Dealers Association (NADA) and a number of other organizations specializing in auto market analysis.
Big Red’s inventory levels have been relatively high in 2023 because of a backlog of GMC Sierra pickup trucks. Sales of the truck failed to draw down supply earlier in the year, leading to a production pause of several weeks alongside a similar pause for the Chevy Silverado.
GMC’s dealer inventory of new GMC Sierra trucks was running at 80 days supply back in March. While Cox Automotive didn’t report on the nameplate’s June 2023 inventory, it did note full-size pickups overall had an average of 80 days supply across the U.S. auto sector.
Cox remarked that 80 days supply is fairly normal for pickups because of the large number of configurations automakers offer for these vehicles. It also noted high inventory for the best-selling full-size trucks from the “Detroit Three” during June, with the Ram 1500 and Ford F-150 both surpassing 100 days supply.
A backlog of EVs built up at dealerships during June, with an average of 100 days supply for all-electric models. GM EVs had much lower inventory than the overall auto market’s 103 days supply. The Chevy Bolt EV had just 23 days on hand at dealerships and the Cadillac Lyriq ran at 50 days for the month. The GMC Hummer EV was the exception, reaching 100 days supply. However, GM told Cox Automotive that many new EVs from all of its brands that are currently in transit have already been sold.
“Sales of new vehicles closed the first half of 2023 surprisingly strong.” is how Charlie Chesbrough, a senior economist at Cox, characterized the 20 percent year over year sales jump across the sector. He remarked the surge was “pent-up demand from individuals and businesses” in an auto market where production and supply are finally reaching levels not seen for several years.
While sales surged, prices edged upward only 3 percent, showing roughly equal gains in supply and demand. Meanwhile, dealers are offering bigger incentives, reaching levels unseen since 2021. Overall, incentives amounted to 4.2 percent of the new vehicle average transaction price (ATP).
Luxury vehicles topped the charts with the highest incentive levels at 7.4 percent of ATP. Luxury vehicle sales amounted to 18.8 percent market share in the U.S., increasing from 18.4 percent in May 2023. EVs had the next largest incentives at 7.1 percent of new vehicle ATP.
U.S. auto market June inventory ended the month at 1.95 million new vehicles, reaching a level last seen in April 2021. Relative to June 2022 this number rose by 835,000 vehicles, an increase of 75 percent.