Is Cadillac in trouble already?

The American brand has begun offering discounts only months after arriving in Australia.

Sales are not typically a sign a company is in good health. Typically it means there is a growing inventory or a distinct lack of demand. So the news this week that Cadillac is offering deals on its Lyriq SUV may not be all good news.

The American brand is offering to pay on-road costs and luxury car tax for buyers, and 1.99 per cent comparison rate finance, between now and the end of September for anyone who buys the electric SUV.

While that’s good news for potential customers, it does raise red flags over Cadillac’s arrival. In a crowded marketplace with seemingly a new brand every other week, the storied American brand has arrived in Australia at arguably the toughest time possible.

Positioned as an all-electric premium brand in a market where electric vehicle sales are flat and luxury buyers are slow to switch alliances, Cadillac might be hoping a headline grabbing sale could help drive interest.

Unfortunately it’s impossible to know how the Lyriq is appealing to customers, with Cadillac not publishing its sales figures publicly. This decision was announced long before the Lyriq hit showrooms, so the brand’s management was clearly expecting a modest start, sales-wise.

The Lyriq starts at $117,000 for the Luxury and $119,000 for the Sport variant, so with the discounts applied those prices should drop around $13k in New South Wales and Victoria. But pricing was never really the issue for Cadillac, with the Lyriq already cheaper than its direct rivals from Mercedes-Benz, BMW and Audi.

Instead, Cadillac will be hoping that its planned expansion, with the high-performance Lyriq V-Series and the Optiq and Vistiq set to bolster its showrooms by the end of 2026.

General Motors’ Australian boss Jess Bala previously expressed confidence in Cadillac’s all-electric strategy, believing the premium market is more robust than the mainstream sector.

“ No, not concerned at all,” Bala told Torquecafe in May. “I think the luxury EV space and the mainstream EV space are quite different. And different customers as well.

“No, not concerned because, I mean, I think our Cadillac vehicles are beautiful. They’re absolutely stunning. We will continue to bring in what we believe the customer wants. If that pivots, then we’ll, we’ll have another look, but very much committed to Optiq, Lyriq and Vistiq coming to market.”