Chevrolet’s sales in China plummeted 75.9% since last year. General Motors responded by slashing prices. The Cadillac XT4 now costs Chinese drivers 31% less. The result is a compact luxury crossover for the equivalent of $22,200 USD. That’s less than you’ll pay for a Chevrolet Trailblazer in the U.S.

As recently as 2018, the automaker sold 640,000 vehicles in China. But in the first third of 2025, it sold just 5,314 cars in the 1.4-billion-person market. Sales fell 68.7% from 2023 to 2024. And in 2025, they’re on track to fall another 75%.

This isn’t a tariff issue. GM has factories in China. The Cadillac XT4 for the Chinese market is made in Cadillac’s Jinqiao plant.

My colleague Sarah Kennedy reported that electrification is shutting Chevrolet out of China. Chinese drivers are opting for the inexpensive and high-tech EVs built by local companies. Chevy and Cadillac, on the other hand, are still banking on internal combustion vehicles. But Chinese buyers aren’t buying them. Now, there are even rumors that General Motors plans to exit China.

Slashing the Cadillac XT4’s price in China

In the meantime, Cadillac is trying to spur sales with price cuts. The XT4 crossover “Urban” trim started at 229,700 yuan last week. Now it costs 159,900. The “Luxury” dropped from 262,700 to 179,900. And the “Premium” went from 275,700 to 189,900. That translates to about $22,200, $25,000, and $26,400. For a Cadillac. Compare that with the nearly $42k MSRP GM charges U.S. customers.

While the XT4 is Cadillac’s entry-level model in the U.S., the company builds an even smaller vehicle for China. The GT4 is a four-door and more of a wagon than a crossover. No word yet on how much of a price cut it’ll get. But the way things are going, it may end up costing Chinese drivers less than the $20k Chevy Trax does in the U.S.

In China, Cadillac does save a bit of money with a cheaper entry-level XT4 engine: a 1.5-liter turbocharged I4. If you want more than 208 horsepower, you can opt for the 2.0-liter mill which is standard in the U.S. But honestly, it isn’t saving enough to explain this dramatic cost difference.

I think General Motors should stick it out in China. If for no other reason than being forced to innovate with efficient new EV designs that will hopefully make their way back to Detroit. But it may be moving in the other direction, if it actually packs up shop in Beijing. Cadillac just announced it is discontinuing the XT4 in the U.S. after the 2025 model year.