GM’s Cadillac Lyriq SUV enters the fray in China as battle intensifies in world’s largest EV market

General Motors (GM) has joined the battle for supremacy in China’s increasingly crowded electric vehicle (EV) market, after its new SUV received a warm response from buyers in the mainland.

The Cadillac Lyriq, a midsize luxury electric SUV, has received 5,000 orders since it went on presale on November 20, SAIC Motor, GM’s joint venture partner, said in a statement on Wednesday.

The keen interest in the SUV, whose deliveries are expected to start in mid-2022, is seen as a sign that conventional internal combustion engine (ICE) carmakers are lifting their game in the world’s largest EV market, where three out of every five cars will be battery powered by 2030.

“The number of orders in just 20 days shows that Cadillac’s vehicles are highly competitive,” said Chen Jinzhu, chief executive of Shanghai Mingliang Auto Service, which offers vehicle maintenance services. “Conventional carmakers are gearing up to catch up with the country’s accelerated pace of electrification [on the roads].”

Hardly any of the EVs assembled by international carmakers like GM or Germany’s Volkswagen (VW), known for their ICE vehicles, feature among China’s top 10 bestselling EV models this year.

California-based Tesla, the only foreign carmaker that fully owns an assembly line in China, and mainland smart EV start-ups such as Xpeng and Li Auto, dominate the premium EV segment.

Hongguang Mini EV, an entry-level car assembled by a three-way ­venture comprising SAIC-GM-Wuling, is the bestselling EV model in China.

The car, which can go 170km on a single charge, is priced from 28,800 yuan (US$4,540), a fraction of Tesla’s Model 3 sedan, which starts from 255,652 yuan.

“Global marques will have to up their ante on high-priced EVs to gain or consolidate their foothold in the world’s largest automotive market,” said Eric Han, a senior manager with Shanghai-based business advisory Suolei.

GM has priced the Lyriq at 439,700 yuan. The single-motor, rear-wheel drive SUV has a driving range of more than 600km.

The vehicle goes up against NIO’s ES8 SUV, which starts at 468,000 yuan and can go as far as 450km on a single charge.

Sales of new-energy vehicles (NEVs) from January to November climbed 178.3 per cent year on year to top 2.15 million units, representing 15 per cent of the country’s total, according to the China Passenger Car Association.

NEVs, which comprise pure electric, plug-in hybrid and fuel-cell cars, made up only 5.8 per cent of total deliveries in China last year.

Apart from GM, VW has also reported rising sales of its EV models in China in recent months. In November, sales of its ID family of EVs hit 14,167 units, up 11 per cent from October.

The ID.4 and ID.6 models are produced by VW’s venture with SAIC while the ID.4 CROZZ and ID.6 CROZZ are built with another partner FAW Group in Changchun, northeastern China’s Jilin province.

In China, monthly deliveries of 10,000 vehicles is a threshold for a carmaker to be viewed as a strong player.

“The EV market in China has huge potential given the increasing penetration rate, and the competition will become fiercer in the coming years as almost all assemblers are investing huge amounts of capital and human resources in the sector,” Suolei’s Han said.