Hyundai Motor Company’s luxury brand Genesis’ sales are soaring. The brand has recorded over 10,000 unit sales for four months in a row, solidifying the likelihood of breaking the 100,000 sales records until the end of this year. The luxury car brand with just four models is selling better than Mercedes-Benz, No. 1 imported car, as well as GM Korea and Renault Samsung Motors. This so-called “Genesis effect” was possible as the brand has built the image of a luxury brand by improving its design and performance while imported cars’ rarity dwindles and South Koreans’ purchasing power increases.
According to Hyundai Motor Company’s announcement on Thursday, Genesis has recorded an accumulated sales of 60,005 units this year with the domestic sales of 11,119 units last month. Genesis launched its first SUV model, GV80, in January this year, followed by the third-generation G80 in March. This was the first time in seven years for Genesis to launch a new model of its key sedan.
The brand has been selling over 10,000 units every month since April when the two models’ sales began at full scale. In June when the brand reached the highest monthly sales record of 13,315 units, G80 accounted for 7,905 units while GV80 sold 3,728 units. As the brand can reach the 100,000 sales mark until the end of this year by selling 8,000 units per month on average, Genesis is highly likely to record the domestic sales of 100,000 units for the first time since its foundation.
The recent success of the brand is often attributed to the design of the newly launched models. Its unique radiator grille shaped like a shield and a sophisticated design with a sense of weight is deemed to appeal successfully to the brand’s main target customers aged over 40. “We have clearly differentiated ourselves from Hyundai Motor Company’s design,” said Lee Sang-Yeob, the head of the Hyundai Design Center. “For G80, a dynamic yet elegant design allows customers to embrace the luxury sedan with all five senses.”
Another factor for Genesis’ recent success is its gradually improved brand image following its separation as a luxury car brand five years ago. The brand has been building a luxury car image differentiated from Hyundai Motor Company with high-performing G70 and luxury sedan models G80 and G90.
South Koreans’ income increase and sophistication in taste for cars have also contributed to the rise of Genesis. “As demand for luxury cars grow as a result of income polarization, Genesis took advantage of the boycott against Japanese cars and the slowdown of some German brands,” said Professor Lee Ho-geun of the Department of Automotive Engineering at Daeduk University. “Now, it’s all about how to expand in the global market.”