Cadillac has started production of the new XTS luxury sedan in China.

Shanghai joins Oshawa, Ontario, as an assembly location for the XTS, marking the brand’s biggest step in its expansion since arriving in China in 2006. 

“We are reaching the next level of Cadillac growth in China,” said Bob Ferguson, vice president global Cadillac. “This expansion in localised assembly for our brand in China coincides with the strong momentum of our new product portfolio and significant growth in the dealer network.”

Cadillac China’s dealer network has grown to more than 150 locations, roughly doubling in the past year. It is planned to reach 250 outlets in the next two years. The brand sold 30,000 vehicles in China in 2012 with a goal of topping 100,000 annually by 2015.

The XTS is claimed to redefine the large luxury sedan in China with advanced technology such as standard magnetic ride control, the CUE system for connectivity and control, and advanced safety systems. 

Local assembly and a smaller displacement turbocharged two litre engine in the XTS help the car better suit China.

“We’re poised to move to the next level,” Ferguson said. “Growth in the Chinese market is essential to any top level luxury auto brand, and it boosts our brand and our business everywhere including in the US.”