Although General Motors is actively developing electric vehicles, the company is not relying solely on this type of powertrain. GM CEO Mary Barra recently stated that the automaker is preparing an entire lineup of hybrid powertrains for the North American market.
The first of these models will only appear in a few years, but in other regions, the process is moving faster. The new plug-in hybrid version of the Cadillac XT5 is already close to starting sales, however, it will not be available in the US anytime soon. China will be the first to receive it.
The Dual Evolution of the Cadillac XT5
Currently, the second-generation Cadillac XT5 is sold exclusively in China. American buyers can still only purchase the first-generation model, which is already approaching its tenth year of its lifecycle. Such product bifurcation is quite unusual, and the situation will not be resolved before the end of 2027, when the new generation XT5 is expected to appear in the US.
Meanwhile, the Chinese version of the XT5 is not only newer but also receiving serious updates, as evidenced by spy photos circulating on Chinese social media.
New Hybrid Powertrain
As Tycho de Feijter reports, the main update is a new powertrain. The prototype spotted during winter testing is equipped with a 1.5-liter turbocharged engine producing 154 hp, paired with an electric motor producing 221 hp.
The specifications of the battery pack have not yet been disclosed, but details are expected to appear soon through regulatory filings with Chinese authorities. Currently, in China, the XT5 is equipped with a 2.0-liter turbocharged four-cylinder engine paired with a 48-volt mild-hybrid system, producing 227 hp. It is not yet clear whether the new plug-in hybrid system will completely replace this engine or will be offered alongside it. In any case, the appearance of the new powertrain signifies a significant change in Cadillac’s product strategy for the Chinese market.
Technological Leap with LiDAR
In addition to the updated powertrain, Cadillac is preparing an even more ambitious technological leap. The prototype spotted during testing has a LiDAR sensor on the roof, making it the first Cadillac model with such equipment. Although GM’s own hands-free driving system, Super Cruise, is available in North America, the Chinese XT5 will be equipped with the Xiaoyao system, developed jointly by GM-SAIC and the local technology company Momenta.
According to reports, the capabilities of the Xiaoyao system go beyond conventional lane-keeping and adaptive cruise control. It is designed to provide driver assistance on highways and in urban conditions, as well as in traffic flow and during parking. For North America, a similar system will only become available in 2028. This delay clearly demonstrates how Chinese models have outpaced other markets in the development of driver assistance technologies, even within the global portfolio of a single manufacturer.
This situation with the Cadillac XT5 is a vivid example of how global automakers are increasingly adapting their products and technologies to specific markets, especially the dynamic Chinese market. China has not only become the first market for the new model but has also received the most modern technologies, while other regions will wait for them for years. This approach may shape new standards of consumer expectations regarding technological equipment and environmental friendliness of cars in different parts of the world, forcing manufacturers to reconsider their global strategies for launching new products.

