Hyundai’s Genesis brand is a dark horse in U.S. luxury vehicle market

NEW
YORK
—
When


Hyundai
Motor
launched
its
Genesis
luxury
brand
domestically
in
2016,
many
were
skeptical
the
South
Korean
automaker
—
recognized
mainly
for
budget
vehicles
at
the
time
—
knew
what
it
was
doing.

Among
the
skeptics
were
auto
industry
veterans
Randy
Parker
and
Claudia
Marquez.
Both
were
working
for

Nissan’s
luxury
Infiniti
brand
at
the
time
and
they’ve
since
made
the
leap

over
to
Hyundai
Group,
with
Parker
leading
the
Hyundai
brand
in
the
U.S.

“We
both
were
looking
at
it
like, ‘Oh,
my
God,
how
are
these
guys
going
to
be
able
to
make
it?’
I
mean,
nothing
against.
It’s
just
complicated.
A
new
brand
in
such
a
competitive
set,”
Marquez,
who
now
leads
Genesis
in
North
America,
told
CNBC
last
week
at
the
New
York
International
Auto
Show.

Not
only
has
Genesis
made
it,
the
brand
has
thrived
to
become
a
dark
horse
in
the
U.S.
luxury
market
with
unique
styling,
unexpected
comfort
and
well-ranked
quality.
It’s
done
so
with
both
gas-powered
and
electric
vehicles.

The
brand
has
overtaken
the
decades-old
Infiniti
brand
in
annual
U.S.
sales
since
2022.
Executives
expect
to
continue
annual
double-digit
growth
over
the
next
five
years,
according
to
Marquez,
who
was
named
Genesis’
North
American
chief
operating
officer
in
October
2021.

“We
have
to
outpace,
by
far,
the
luxury
market,”
she
said. “It’s
going
to
continue
being
strong.
It
has
to
be
a
marathon,
not
a
sprint.”

Genesis
started
as
a
vehicle
in
Hyundai’s
lineup
but
the
company
announced
in
late
2015
that
it
would
become
its
own
brand.
Since
then,
its
U.S.
sales
have
grown
from
fewer
than
7,000
vehicles
in
2016
to
more
than
69,000
last
year.

Along
those
lines,
Marquez
and
José
Muñoz,
Hyundai
president
and
global
chief
operating
officer,
noted
that
while
robust
Genesis’
growth
is
expected,
it
will
be
at
a
restricted
pace
to
retain
the
residual
values
and
pricing
of
the
vehicles.

Muñoz
said
expectations
for
the
brand
are “still
high”
but
its
volume
ambitions
for
the
U.S.
are
more
in
line
with
its
rivals
such
as
Porsche
than
that
of
Lexus
and
Mercedes-Benz,
which
sell
hundreds
of
thousands
of
vehicles
annually.  

“We
still
have
a
long
ways
to
go,
but
this
is
not
a
mass
brand.
So,
we
don’t
have
a
huge
volume
aspirations,
but
there’s
still
a
significant
way
to
go,”
Muñoz,
who
also
serves
as
CEO
of
Hyundai
Motor
and
Genesis
Motor
North
America,
said
during
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)
and
Volvo
(128,350).
Genesis
sales
last
year
increased
about
23%
over
the
prior
year
to
69,175
vehicles.

One
of
Genesis’
greatest
challenges
remains
awareness,
Marquez
said.
Stephanie
Brinley,
principal
automotive
analyst
at
S&P
Global
Mobility,
agreed
with
that
perception.

“It’s
an
upstart
that’s
gained
credibility;
now
it
has
to
gain
a
wider
audience,”
Brinley
said. “It
is
respected
at
this
point.
The
problem
is,
just
not
quite
enough
people
know
about
it
yet.
…
That’s
the
space
it
occupies
right
now.”

For
the
short
term,
Genesis
is
looking
to
grow
awareness
and
sales
with
new “Magma”
performance
models.
It
intends
to
offer
a
performance
variant
for
each
production
vehicle,
the
company
said
last
week
in
conjunction
with
the
auto
show
in
New
York.

The
brand
also
may
expand
its

lineup
with
a
three-row
SUV.
Genesis
revealed
a
large,
all-electric
concept
SUV
last
week.
Marquez
declined
to
discuss
potential
production
plans
but
said
to
expect
such
a
vehicle “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
all-electric
vehicles.
Genesis’
2024
starting
prices
range
from
about
$41,500
for
the
G70
to
more
than
$89,000
for
the
G90.

Worldwide,
the
Genesis
G80
is
the
best-selling
model
in
the
brand’s
vehicle
lineup
since
its
introduction
in
2016,
with
390,738
units
sold
across
the
global
market,
including
electrified
G80
models. 

The
brand
is
likely
to
get
a
boost
in
local
manufacturing
with

a
new
$7.6
billion
factory
expected
to
begin
production
later
this
year
in
Georgia.

Muñoz
said
Genesis
will
be
a “key
focus
of
the
plant,”
which
also
will
produce
Hyundai
and
Kia
vehicles.
The
brand
currently
assembles
the
GV70
gas
and
electric
SUVs
at
a
plant
in
Alabama,
while
the
other
models
are
imported
from
South
Korea.

“The
products
are
very
strong.
They’re
very
welcomed
by
the
consumer
as
we
have
focused
on
[the
U.S.],”
Muñoz
said. “This
is
the
most
important
market
for
a
Genesis
without
a
doubt.”