Cadillac may be branded as an underdog in North America, but in China the luxury division is a big player. In fact, China is Cadillac's top market these days. Combine Cadillac's success in China with a growing demand for fuel-efficient vehicles, and we have the Cadillac XT5 Hybrid.

The XT5 Hybrid that was revealed at the Chengdu auto show on August 25th represents the brand's first mild-hybrid vehicle in the country. Full details surrounding the powertrain itself weren't revealed, but Cadillac says it will feature an electric motor and General Motors' latest 9-speed automatic transmission to help improve fuel economy. The motor can aid the engine and recover energy during braking or cruising. Additional improvements include a start/stop system, and an additional gear for the transmission to improve acceleration in congested traffic.

Cadillac says the XT5 Hybrid sips 2.1 gallons of gasoline per 62 miles, which is about 29.5 mpg.

While it's unclear if the Cadillac XT5 Hybrid will make its way to other markets outside of China, Buick introduced the 2018 LaCrosse with a standard mild-hybrid system earlier this year. It replaces the 3.6-liter V-6 as the entry-level powertrain and also reduces the price by just over $2,000. Cadillac's only hybrid vehicle sold in the U.S. market is the CT6 Plug-In. The unloved ELR plug-in hybrid quietly exited production last year.

Cadillac XT5 Hybrid China

Cadillac XT5 Hybrid China

In China, the XT5 Hybrid replaces the XT5 28T Platinum 4WD and 28T Advanced 4WD trims with new XT5 28E Platinum 4WD and 28E Advanced 4WD variants. Both will go on sale with identical prices to the outgoing non-hybrid trims.