Genesis, the premium brand of Hyundai Motor, is moving to expand its share in Europe by leading with premium, high-performance electric vehicles. It plans to extend its territory not only in Western Europe, the biggest market, but across the continent, including Eastern, Southern and Northern Europe, where EV sales have been rising quickly.
Genesis said at a press briefing on the 12th in Le Mans, France, where the 24 Hours of Le Mans motorsport race is held, that it will enter four additional countries—Poland, Portugal, Denmark and Austria—by 2027.
Genesis entered Europe in 2021, starting with Germany, Switzerland and the United Kingdom, and has since expanded into other Western European countries including France, Spain, Italy and the Netherlands. As released this time, with the addition of the four countries including Poland, the number of European countries where Genesis has built a sales network will total 11.
Genesis chose the four countries—Poland, Portugal, Denmark and Austria—because it noted the growth trend in the EV market. The EV growth rate in these countries this year is 47.4%. That is about 20 percentage points higher than the 29.7% growth rate of the European EV market.
The combined annual sales volume of the four countries is 1.34 million units, of which EVs account for 280,000 and premium cars 300,000. That means a high share for EVs and premium cars, Genesis' target markets.
Genesis plans to make Poland, Europe's No. 6 market, its base in Eastern Europe. Poland, where 600,000 new cars are sold annually, has the largest auto market in Eastern Europe. Last year's EV sales rose 161.5% from a year earlier, the highest rate in Europe.
Genesis will enter Denmark, Europe's No. 7 EV market (101,627 units), to establish a bridgehead for expansion into Scandinavia. It will also enter Austria, which recorded annual EV sales of 60,000 units, completing a sales network for the three German-speaking countries—Germany, Switzerland and Austria. Portugal falls under the Iberian Peninsula sales territory along with Spain.
Vehicles to be投入 in these markets include the GV60, a compact electric sport utility vehicle (SUV), and the electrified GV70 and GV80 models. In the European market, demand for EVs continues to grow due to tighter environmental regulations. Many analysts say Genesis is well positioned to effectively target the premium EV market, as traditional German luxury brands such as Mercedes-Benz, BMW and Audi are facing challenges in their shift to electrification.
Along with expanding in Europe, Genesis also plans to change its sales model. It will shift from a system in which the manufacturer holds pricing power and vehicle ownership and sells directly, to a dealer-centered structure leveraging local networks.
A Genesis official said, "The existing model was advantageous for building a premium image as a young brand, but we determined that the role of local dealers is important to accelerate brand expansion." Since April, Genesis has operated dealerships in Amsterdam, Netherlands, and Padua, Italy. In the second half, it will add dealerships in Lille, France, and Rome, Italy.
Meanwhile, to cement its position as a premium, high-performance automotive brand, Genesis will compete in the 24 Hours of Le Mans hypercar class for two days from the 13th (local time) in Le Mans, France. The strategy is to prove driving performance and durability and to make a strong impression on European consumers through direct engagement on the ground.
Lee Si-hyeok, head of the Genesis Business Division (executive vice president), said, "Genesis' expansion in Europe is not mere external growth, but part of redefining its value as a global premium car brand," adding, "We will continue to broaden our touchpoints with European consumers."