The G70, a midsize sedan sold by Hyundai Motor Group's luxury brand Genesis, is reportedly entering the process of being discontinued. The first-generation model, launched in 2017, has continued to be sold, but Genesis has halted the development of a successor model, citing limited demand for luxury midsize sedans.
According to Hyundai Motor on the 29th, the cumulative domestic sales of the G70 from January to July this year amounted to 1,069 units, a 24.8% decrease compared to the same period last year. Excluding April and June, the G70's monthly sales have fallen below 200 units every month in the first half of the year. The sales in July, which had fewer working days due to vacation, were only 71 units.
The cumulative sales of Genesis's full-size sports utility vehicle (SUV) GV80 this year is 18,654 units. Although the GV80, which was released in January 2020, also saw a 30% drop in sales compared to the same period last year due to model aging, this figure is 18 times that of the G70. During the same period, the sales of the midsize sedan G80 decreased by 9.1% compared to last year, totaling 24,987 units.
Midsize sedans are generally regarded as volume models (mass-selling vehicle types) for complete automobile manufacturers, but they are not fulfilling their role within the Genesis brand. An official from Hyundai Motor Group noted, "Having failed to establish a solid market presence in both the domestic and global markets over the past eight years since its launch, we have not proceeded with the development or investment of a second-generation model," adding, "The currently sold model is also expected to stop production within the next 2 to 3 years." There are opinions within the auto industry that the G70's discontinuation could occur in 2027.
The G70 is the third model launched under the Genesis brand, following the flagship large sedans EQ900 and G80 from Hyundai Motor Group. It was anticipated that alongside Kia's Stinger, which was released in the same year, they would split the domestic luxury midsize sedan market. However, both models recorded disappointing sales figures, and production of the Stinger was halted in April 2023.
The G70 initially had a good run in the domestic market, selling 14,417 units in 2018 and 16,975 units in 2019, but sales plummeted to 7,910 units in 2020, halving compared to the previous year. It continued to decline with sales of 7,429 units in 2021, 6,087 units in 2022, and 4,320 units in 2023, with last year's figure reaching only 2,371 units.
The G70 has struggled to establish its presence in the global market, overshadowed by Toyota's luxury brand Lexus IS, among others. Genesis launched the G70 in the UK in 2021 but decided to halt sales last year, three years later. While it continues to be sold in the U.S. market, a 25% tariff has been imposed since April, weakening its price competitiveness. Unlike many volume models from Hyundai and Kia, Genesis manufactures most of its vehicles domestically for export to the U.S.
The auto industry analysis indicates that the demand for midsize sedans in the domestic luxury car market is limited. Genesis has attracted luxury brand demand by offering higher-tier models at lower price points compared to imported cars.
As a result, existing demand for imported cars has shifted towards large sedans and more practical SUVs, allowing the G80, GV80, and the midsize SUV GV70 to establish themselves, while the midsize sedan G70 has been neglected due to its ambiguous position.
A source within the automotive industry stated, "The demand for the midsize sedan market is decreasing, and the G70's small body makes it closer to a compact sedan by domestic standards," explaining that its size is smaller than the Hyundai Sonata and Kia K5, while its price is more than 10 million won higher, which clearly shows its limitations.