New York – When Hyundai Motor When Genesis launched its luxury brand locally in 2016, many were skeptical that the South Korean automaker — mainly known for budget cars at the time — knew what it was doing.
Among the skeptics were auto industry veterans Randy Parker and Claudia Marquez. They were both working for Nissan's luxury brand Infiniti at the time, and have since moved to the Hyundai group, with Parker leading the Hyundai brand in the US.
“We were both looking at it like, 'Oh my God, how are these people going to pull this off?' “I mean, nothing against. It's just complicated. A new brand in such a competitive group,” Marquez, who now drives Genesis in North America, told CNBC last week at the New York International Auto Show.
Not only did Genesis achieve success, but the brand blossomed into a dark horse in the American luxury car market with unique design, unexpected comfort, and top-notch quality. This is done with both gas and electric cars.
Patricia Wayne, first customer of the all-electric GV60 and Claudia Marquez (right), Chief Operating Officer, Genesis Motor North America, at Genesis Santa Monica, Santa Monica, California, May 26, 2022.
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The brand has outpaced the decades-old Infiniti brand in annual sales in the U.S. since 2022. Executives expect continued double-digit annual growth over the next five years, according to Marquez, who was named president of Genesis' North American operations in October 2021. .
“We have to be far ahead of the luxury market,” she said. “He will continue to be strong. It should be a marathon, not a sprint.”
Genesis started out 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 vehicles last year.
Growing awareness
Along these lines, Marquez and Jose Muñoz, Hyundai's president and CEO of global operations, noted that although strong growth is expected for Genesis, it will be at a constrained pace to retain residual values and vehicle prices.
Expectations for the brand “remain high” but its volume ambitions for the United States are more in line with rivals like Porsche than with Lexus and Mercedes-Benz, which sell hundreds of thousands of vehicles annually, Muñoz said.
Hyundai CEO Jae-Hoon Chang (left) and Jose Muñoz, Hyundai's president and chief global operations officer, attend the 2024 New York International Auto Show
Michael Weiland | CNBC
“We still have a long way to go, but this is not a huge brand. So, we don't have very high-volume aspirations, but there is still a big way to go,” Muñoz, who also serves as CEO of Hyundai Motor and Genesis Motor North America, said during an interview. Separate in the gallery.
The brand's closest competitors based on 2023 sales are Land Rover (71,727 units), Porsche (75,415 units), Lincoln (81,818) and Volvo (128,350). Genesis sales last year rose nearly 23% over the previous year to 69,175 vehicles.
Marquez said one of the biggest challenges facing Genesis remains awareness. Stephanie Brinley, principal automotive analyst at S&P Global Mobility, agreed.
“It's a start-up that has gained credibility, and now it has to gain a broader audience,” Brinley said. “She's respected at this point. The problem is that not enough people know about her yet. … That's the space she's occupying now.”
Performance models
In the short term, Genesis is looking to increase awareness and sales with the new “Magma” performance models. The company said last week in conjunction with the New York Auto Show that it intends to offer a performance variant for each production car.
The brand may also expand its lineup with three-row SUVs. Genesis unveiled a large, all-electric SUV last week. Marquez declined to discuss potential production plans but said he expected such a car “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 2024 Genesis prices range from about $41,500 for the G70 to more than $89,000 for the G90.
GV60 Magma concept
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Globally, the Genesis G80 has been the best-selling model in the brand's vehicle lineup since its introduction in 2016, with 390,738 units sold in the global market, including G80 electric 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 the “main focus of the plant,” which will also produce Hyundai and Kia vehicles. The brand currently assembles the GV70 gas and electric SUVs at a plant in Alabama, while other models are imported from South Korea.
“The products are very strong. They have been very well received by the consumer and we have focused on them [the U.S.]“This is the most important market for Genesis without a doubt,” Muñoz said.
