Genesis GV80 Coupe / Courtesy of Genesis
By Lee Min-hyung
Genesis is intensifying its rivalry against BMW and Mercedes-Benz to grab a larger share of the local luxury vehicle market, as luxury cars guarantee higher margins amid an industry slowdown caused by global economic doldrums, according to data and industry officials, Sunday.
According to Genesis, the luxury car brand began selling the GV80 Coupe SUV in Korea last month. Its launch came amid growing domestic popularity for high-end SUVs. Genesis expects the new model to extend the brand’s earlier success driven by the flagship GV80 SUV.
Data showed that the GV80 is outperforming its counterparts manufactured by luxury carmakers from Germany. According to market tracker Car Is You, GV80 sales came in at 19,664 for the first nine months combined this year, surpassing the sales figures for the Mercedes-Benz GLE and BMW X5. Sales for the two flagship SUVs here reached 4,909 and 3,798, respectively.
Hyundai Motor Group is poised to strengthen the competitiveness of Genesis’ value-added luxury segment in a bid to tackle the currently unfavorable market conditions.
BMW X5 / Courtesy of BMW Korea
But there are still obstacles ahead, as sales for Genesis’ electric models fell behind its rivals. The sales figure for Genesis Electrified G80 sedans between January and October this year reached 938, according to the car market tracker. But sales of its competitor, Mercedes-Benz EQE, came in at 1,895 during the same period.
“Shortly after Genesis made its debut in 2015, a number of market insiders raised doubts whether Genesis will be able to rise enough to compete with overseas luxury carmakers, but the woes are gradually being cleared away, as shown from its rapid sales growth,” an industry official said.
“But it still requires more time for Genesis to reinforce its position due to the lack of history. One big difference from eight years ago is that few raise such concerns, and most critics now accept the brand as a reliable luxury carmaker.”
The pace of Genesis’ growth is noteworthy, compared to other luxury car brands. Genesis sold 530 vehicles in the first year of its launch, but sales soared over 100,000 in 2020 and 200,000 in 2021. As of the end of the first quarter of 2023, sales of Genesis cars accounted for 5.4 percent of Hyundai Motor Group’s global sales.
Meanwhile, it took 32 years for Lexus to reach 5 percent out of the total sales for its parent firm, Toyota Motor, since Lexus made its debut in 1989.
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