Cadillac Targets Strong EV Sales Growth in 2025
Cadillac is anticipating that electric vehicles will represent a significant portion of its U.S. sales this year. The General Motors luxury brand projects that approximately 30% to 35% of its domestic sales in 2025 will be all-electric models. This optimistic outlook comes as the automaker continues to expand its EV lineup, despite the slower-than-expected adoption rate of electric vehicles across the industry.
By the end of this year, Cadillac plans to offer a total of five EVs. These include the recently launched Escalade IQ and Optiq entry-level crossover, which are expected to boost Cadillac’s EV offerings. They join the Cadillac Lyriq, which has already seen success in the market, and will be subsequently followed in the year by the three-row Vistiq crossover and the high-end Celestiq car, priced at over $300,000.
“The momentum is really there,” said Brad Franz, Cadillac’s director of marketing, during an interview with CNBC. “We’re going to ride that momentum and we’re not launching the vehicles to redistribute the business among [internal combustion engines] and EV portfolio. It’s to grow the business.”
Cadillac’s focus on electric vehicles comes after the company adjusted its initial plans to exclusively offer EVs by 2030. The decision to offer a full lineup of EVs alongside vehicles that use internal combustion engines was made to remain responsive to consumer demand, but the brand remains committed to electrification
Cadillac’s U.S. sales last year saw an 8.8% increase, largely driven by the Lyriq, which experienced a more than threefold increase in sales. The company is aiming for a considerable increase in EV sales in 2025, up from 18% of its total U.S. sales in 2024. Currently, EVs constitute a smaller portion of the overall U.S. car market, around 8.1% of the approximately 16 million vehicles sold last year, as reported by Cox Automotive.
According to Franz, the Escalade IQ and Optiq are important new vehicles for Cadillac, which hopes to be the leading luxury EV brand in the country. Cadillac’s strategy involves leveraging the Escalade’s reputation with the Escalade IQ, which offers an all-electric SUV, starting at around $130,000. The Optiq, starting at about $55,000, is an entry-level electric crossover designed to attract new customers. The Optiq will also feature a partnership with Dolby Laboratories, incorporating Dolby Atmos surround sound technology. The Lyriq, which is produced in Tennessee, is expected to keep its position as Cadillac’s top-selling EV despite the Optiq being less expensive. The Optiq is being produced at one of GM’s plants in Mexico, so it remains to be seen how the tariffs threatened by Trump could impact sales.
