Cadillac expects one-third of U.S. sales to be EVs

Cadillac anticipates that about one in three vehicles it sells in the U.S. will be electric in 2025. This follows the company's strategy to broaden its electric vehicle (EV) range, even as the market for EVs has been slower to grow than expected. The luxury brand plans to have five electric models available by the end of 2025. These include the recently introduced Escalade IQ and the Optiq crossover. They will join the Cadillac Lyriq and a three-row Vistiq crossover, along with the high-end Celestiq, which has a starting price of over $300,000. Brad Franz, Cadillac’s marketing director, expressed confidence in the company’s growth. He emphasized that the goal is to grow the business, not just shift existing sales from gas-powered vehicles to EVs. Cadillac aims for EVs to make up 30% to 35% of its U.S. sales, a rise from 18% last year. In 2024, Cadillac sold nearly 29,072 EVs, compared to an overall market where EVs accounted for 8.1% of sales in 2023. This was below analysts' predictions of 10%. Cadillac has adjusted its previous goal of only selling electric vehicles by 2030. The decision will now depend on consumer demand. The company continues to provide both gas and electric options. Franz stated that offering variety is a way to attract more customers. Last year, Cadillac’s sales grew by 8.8%, largely due to strong demand for the Lyriq. The new Escalade IQ is Cadillac’s largest electric SUV, priced around $130,000. The Optiq will serve as a more affordable entry point at about $55,000. This model also features new sound technology from Dolby. Cadillac expects the Lyriq to remain its top-selling EV despite the Optiq being cheaper. Franz did not comment on how potential tariffs on vehicles produced in Mexico might affect Optiq sales.