new york — when hyundai car The company launched its luxury car brand “Genesis” in the country in 2016, but I wonder if the Korean automaker, which was mainly known for its low-priced cars at the time, knows what it’s doing. Many were skeptical.
Among the skeptics were auto industry veterans Randy Parker and Claudia Marquez. Both men worked at Nissan’s luxury brand Infiniti at the time, but have since moved to Hyundai Group, with Parker leading the Hyundai brand in the United States.
“We were both looking at it like, ‘Oh my God, how are these people going to be successful?'” “I mean, we’re not against it. It’s just complicated. Things like this “There’s a new brand in a very competitive set,” Marquez, who currently heads Genesis in North America, told CNBC last week at the New York International Auto Show.
Genesis was not only a success, but its unique style, unexpected comfort, and high-ranking quality helped the brand grow to become a dark horse in the American luxury market. This is done for both gasoline and electric cars.
Patricia Wayne, first customer of the all-electric GV60, and Genesis Motor North America Chief Operating Officer Claudia Marquez (right) at Genesis Santa Monica on May 26, 2022 in Santa Monica, California. ).
Book of Genesis
The brand has surpassed the decades-old Infiniti brand in annual U.S. sales starting in 2022. Marquez, who was named Genesis’ North American chief operating officer in October 2021, said executives expect continued double-digit annual growth for the next five years.
“We have to be much more than the luxury market,” she said. “I think it will continue to be good. It has to be a marathon, not a sprint.”
The Genesis started out as a vehicle in Hyundai’s lineup, but the company announced it would become its own brand at the end of 2015. Since then, the company’s U.S. sales have increased from less than 7,000 units in 2016 to more than 69,000 units last year.
heightened awareness
Along these lines, Jose Muñoz, Hyundai President and Global Chief Operating Officer, and Marquez expect strong growth for Genesis, while maintaining vehicle residual values and affordability. He pointed out that the pace would be limited.
Muñoz said expectations for the brand “remain high,” but that its U.S. sales goals are more in line with rivals such as Porsche than with Lexus and Mercedes-Benz, which sell hundreds of thousands of cars a year. Told.
Hyundai CEO Jang Jae-hoon (left) and Hyundai president and global chief operating officer Jose Munoz attend the 2024 New York International Auto Show.
Michael Weiland | CNBC
“We still have a long way to go, but this is not a mass brand, so we’re not aiming for large-scale sales, but we still have a long way to go,” said Munoz, who is also CEO of Hyundai Motors. said Genesis Motor North America in a separate interview at the show.
The brand’s closest competitors based on 2023 sales were Land Rover (71,727 units), Porsche (75,415 units), Lincoln (81,818 units), and Volvo (128,350 units). Genesis sales last year totaled 69,175 units, an increase of approximately 23% from the previous year.
Marquez said one of Genesis’ biggest challenges is awareness. Stephanie Brinley, principal automotive analyst at S&P Global Mobility, agrees with that perception.
“This is a startup that has gained credibility, but now it needs to reach a broader audience,” Brinley said. “At the moment it’s respected. The problem is that not enough people know about it yet. … That’s the space it occupies right now.”
performance model
In the short term, Genesis is aiming to increase awareness and sales with its new Magma performance model. The company announced last week in time for the New York Auto Show that it plans to offer different performance variations for each of its production vehicles.
The brand may also extend its brand Lineup of 3-row SUV. Genesis unveiled a large, all-electric concept SUV last week. Marquez declined to discuss potential production plans, but said he expected such a vehicle to appear “sooner rather than later.”
Genesis currently offers three sedans (G70, G80, G90) and three SUVs (GV60, GV70, GV80). The G80, GV60 and GV70 are also available as fully electric vehicles. Starting prices for the Genesis in 2024 range from about $41,500 for the G70 to more than $89,000 for the G90.
GV60 Magma Concept
Book of Genesis
The Genesis G80 has been the best-selling model worldwide since its launch in 2016, with 390,738 units sold in the global market, including the electrified G80 model.
The brand is likely to accelerate local manufacturing with a new $7.6 billion factory scheduled to begin production in Georgia later this year.
Muñoz said Genesis will be a “key focus of the plant,” and that the plant will also produce cars for Hyundai and Kia. The brand currently assembles the GV70 gasoline SUV and electric SUV at its Alabama factory, with other models imported from South Korea.
“The product is very strong. It’s been very well-received by consumers because of our focus.” [the U.S.]”This is definitely the most important market for Genesis,” Munoz said.