GM's Cadillac Ramps Up Lyriq Production Amid Surging Demand For Luxury EVs: Report

General Motors Co’s (NYSE:GM) luxury brand, Cadillac, is reportedly ramping up production of its Lyriq electric SUV given the better availability of batteries and strong demand for luxury EVs.

What Happened: The production of the Cadillac Lyriq had been falling short due to battery module assembly issues. But with battery modules becoming available, the company is now planning to ramp production, Reuters reported, citing Cadillac global vice president John Roth.

Roth is also positive on demand for the vehicle. “The luxury industry is I think operating at a little bit of a different level than the main market as it relates to EVs. We still see in the data, 60% of the consumer base, that their next luxury vehicle will be an EV,” the senior executive told Reuters.

The Lyriq’s lowest-priced rear-wheel drive version starts from $58,590 while the higher-end Sport version starts from $63,190.

See Also: Best Electric Vehicle Stocks

Why It Matters: A total of 9,154 Cadillac Lyriqs were sold in 2023 as compared to 122 in 2022. In the fourth quarter alone, 3,820 units were sold.

Though the Lyriq, along with the CT4, was among the Cadillac vehicles that saw lower sales last year, it was also the second-most sold EV from General Motors after the Chevrolet Bolt EV/ EUV. GM ceased production of the Bolt in December.

The Lyriq further lost eligibility for a federal EV tax credit of $7,500 starting Jan. 1 after new eligibility requirements kicked in. However, GM has previously said that Lyriq is losing out on eligibility due to a small component and that the company will source eligible components in early 2024 to ensure it regains eligibility.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next: You Can Have Any Color Tesla Model X To Qualify For EV Tax Credit — As Long As It Is Stealth Grey