Australian market is an 'exciting' challenge: 2025 Cadillac Lyriq sports luxury SUV ready to face BYD's premium brands and take the fight to Audi Q8 e-tron, BMW iX3 and Mercedes-Benz EQE SUV

Is now the worst time for Cadillac to launch into the Australian market?

After years of snubbing Australia with its range of brash V8-powered sedans, Cadillac is finally taking the plunge in 2024, but as a more progressive electric-only brand.

Cadillac may be a changed brand since Holden left our shores last decade, but it’s launching into a changed Australia. Prior to the flood of new Chinese players onto our shores, we were already one of the most competitive markets in the world with our expansive mix of Japanese, Korean and European automakers all vying for a slice of a relatively small market.

The number of players on offer is only going to expand in the next 24 months. Not only will Cadillac have its work cut out for it challenging the very entrenched luxury German three, Mercedes-Benz, Audi and BMW, and carving out a niche against Lexus and Genesis, but it will also need to separate itself from more upmarket offerings from China.

Xpeng, which pitches itself as a more premium player compared to the likes of MG, Chery, and GWM is also electric-only and set to arrive before the end of 2024.

BYD’s local importer has said it’s interested in importing its higher-end brands, the Land Rover-rivalling Fang Cheng Bao and the ultra-luxury YangWang.

How does Cadillac feel about this? Confident, according to GM’s local Managing Director Jess Bala.

“I think it’s really exciting, what’s going on in the market here right now. The range that customers have access to means it gives us an opportunity to do something different and that’s what we’re going to be doing. Making sure that everything, end-to-end, is really customer centric.”

Alluding to this customer centric approach, Bala hinted at a comprehensive ownership program similar to those employed by Lexus and Genesis. Those brands offer concierge services, free loan cars, valet at service time, alongside long no-cost servicing periods for their electric vehicles.

“We have to look at everything - how do we make it unique and Cadillac - how do we stand out? It’s a combination of where do we activate, what are our offers to our customers - what aspects do we include - is it servicing, charging related offers, are there events going on in the country we can partner with - we’re looking at absolutely everything,” she said.

“We will share more in a couple of months from now."

Bala was also confident Cadillac’s first launch before the end of 2024, the Lyriq sports SUV, would have enough wow-factor when seen in the metal to win the hearts of buyers.

“I truly believe that when people see Lyriq in person it will blow them away. When we had our first hand-raiser event in May we had people flocking to it. We had that followed up in the days after with people telling us ‘I must be the first one to have one of these’ and that’s before they’ve even driven the car,” said Bala.

“Once we get them out and into the public more, it will do the job of selling itself, and it will allow us to set ourselves apart and on top of all the other options customers have here.”

Rivals may not be the only issue facing Cadillac, though, as 2024 has seen cooling demand for electric vehicles generally with much smaller growth than in 2023.

In responding to a question around the falling sales of EVs globally, Bala said: “We’re still very confident.” 

“It’s more around being able to set ourselves apart. Being a luxury brand we’re not going after those mainstream volumes, we’re going after those customers that want a premium luxury entry, and because of that we still think it’s the right time," said Bala.

“Obviously like every other brand we’re watching what's going on globally from an EV market segment standpoint and then we’ll adapt accordingly, but absolutely think it’s the right time.

“We’ve got a set-up to handle whatever the market may throw at us.”

GM will employ a new direct-to-consumer strategy rather than a traditional dealer network.

Cadillac will initially launch with ‘experience centres’ in Sydney, Melbourne, Brisbane, and Auckland, where potential buyers can actually see a Lyriq in the metal, but says it will be able to deliver to any city outside of these capitals. It has a view to expanding to other cities in 2025 and beyond, and hinted its range may also expand to include the smaller Optiq electric SUV and Celestiq sedan at a later date.