Cadillac expects slower growth in China this year after a 2016 spike spurred by the opening of a dedicated factory.

The brand is now fifth best-selling premium marque in China behind the three German brands and Jaguar Land Rover.

But the GM marque has to do a "mind shift" to no longer think of itself as a second-tier brand, Cadillac's China chief, Andreas Schaaf, told Reuters in an interview.

"We want to move up to the top three," he said, adding he expects China to become Cadillac's biggest market in less than five years.

China is GM stablemate Buick's largest market.

For 2017, Schaaf told Reuters, he was "optimistic".

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"We are expecting another double-digit growth in China. Most likely not in the same range as what we have seen last year (2016) because growth of nearly 50% is truly a very exceptional year," he said.

Schaaf said Cadillac planned to launch more products in China ahead of other regions in the future.

This month, it launches a plug-in hybrid version of its CT6 flagship sedan in China, which it looks to follow up with launches of more plug-ins and electric vehicles to meet the country's strict emission regulations.

Shanghai, where plug-ins get free licence plates, is the key market for the CT6 hybrid, he said.

"A brand that doesn't have more plug-ins and more electric vehicles will most likely have a very difficult future in China," Schaaf told Reuters.