Originally Published: 12 OCT 22 14:26 ET

By Peter Valdes-Dapena, CNN Business

(CNN) -- General Motors unveiled a new, slightly bigger redesigned version of its cheapest entry-level SUV, the Trax. The new version looks much, much sleeker than the chunky little SUV it replaces and adds new features. But it also drops one major option while retaining what may be the SUV's most important feature, it's cheap price.

The subcompact Trax SUV has a starting price of just $21,500, a couple of hundred dollars below it's current price putting it firmly among the cheapest SUVs on the market. It will compete against the likes of the recently redesigned Honda HR-V, the Hyundai Kona, the Mitsubishi Outlander Sport and the Nissan Kicks. All versions of the Trax, including flashy-looking Trax RS models, will have starting prices under $25,000, GM executives said. The average base sticker price for vehicles sold in the United States today is almost $47,000, according to Edmunds.com, so SUVs like the Trax are, relatively speaking, dirt cheap.

The fact that some automakers are adding more cheap SUVs to the lineups, while others have dropped out of this market altogether shows that there is opportunity here, said Brad Franz, director of Chevrolet cars and crossover SUVs.

There has been an overall increase in cheap SUV models -- meaning those with base prices around $25,000 or less -- in the last five years, according to Edmunds.com.

"I'd also say that the quality of vehicles in this segment has improved dramatically," said Edmunds.com editor Will Kaufman. "Automakers are taking it seriously."

The US auto market has shifted heavily towards SUVs in recent years but, in general, SUVs tend to cost more than cars. Products like the Trax provide an opportunity for those who want the storage space and tall seating position of an SUV but can't afford -- or don't want to pay for -- bigger, more expensive models. Among cars that are not SUVs, Chevrolet currently has the cheapest one of those available in the United States, the $13,600 Spark. Some other automakers like Honda have abandoned the super-cheap car market believing those customers would just as well buy a good used car.

The gas-powered Trax's unveiling comes just weeks after GM unveiled the Chevrolet Equinox EV, a $30,000 electric SUV that will be among the cheapest electric SUVs on the market. These new SUVs serve as proof, company executives say, that GM's mainstream Chevrolet brand intends to maintain a position at the cost-conscious bottom end of the car market, even as it also offers models like the $106,000 Corvette Z06 and Tahoe SUV models with base prices approaching $80,000.

The new Trax will be powered by a 1.2-liter turbocharged 3-cylinder engine producing about 137 horsepower, and it will be attached to a 6-speed automatic transmission. Unlike some competitors, the Trax will not be offered in an all-wheel-drive version, an option that is available on the current model. The new Trax will be available with front-wheel-drive only. Customers who want all-wheel-drive can choose the slightly more expensive Chevrolet Trailblazer, which has a more upright, truck-like appearance and a firmer ride for those wanting a more traditional SUV experience, Franz said.

GM's strategy of having two SUVs in this value-priced segment is similar to the approach taken by some others like Hyundai. The Venue, Hyundai's cheapest SUV, is front-wheel-drive only but the slightly more expensive Kona offers all-wheel-drive as an option.

The Trax and Trailblazer share much of their engineering, including the little 3-cylinder engine, and both will be assembled at the same GM factory in South Korea. The Trax is slightly longer and lower. It's also 11 inches longer and about two inches wider than the current Trax model. Besides the base-level Trax LT, it will also be available in RS versions with sportier design features, including special wheels and a flat-bottomed steering wheel. Trax Activ models will have a slightly more rugged off-road look including black wheels. Besides the design details and other added features, like heated front seats, there will be no real performance difference in these compared to other Trax SUVs.

GM also boasts that the Trax will have options like active cruise control, which can automatically maintain a safe distance behind cars ahead on highways, a feature usually found on pricier vehicles. Active noise cancellation will also be a standard feature on all Trax models. This feature uses inaudible sound waves produced by the car's stereo speakers to cancel out some noises such as those from the tires and engine.

The Trax will go on sale in the spring.