Genesis, the premium brand of Hyundai Motor Group, declared it will expand its push in Europe. By offering consumers a wide range of choices including premium electric vehicles and hybrid electric vehicles (HEVs), it plans to make Europe a new growth engine after Korea and the United States.
José Muñoz, president and CEO of Hyundai Motor, said at a media conference on the 12th (local time) at France's Le Mans Circuit de la Sarthe, "Genesis will grow fivefold in Europe." He said the brand will strengthen fundamentals across all areas, including dealerships, not just sales volume.
Muñoz said the number of sales countries in Europe will be expanded from the current seven to a total of 11 by adding four, including Poland and Portugal, and that the brand will boost sales by establishing more than 50 sales outlets and 200 authorized service centers.
◆ The key strategy to underpin fivefold growth is "24 Hours of Le Mans"
Genesis plans to raise its profile by entering the 24 Hours of Le Mans. In the Le Mans 24 Hours Hypercar class, held for two days from the 13th, Genesis' Magma racing team will participate for the first time among Korean finished-car makers. The 24 Hours of Le Mans is an extreme race in which a total of three drivers run nonstop for 24 hours on a 13.626-kilometer track. It is a stage where the capabilities of automakers—engine performance, durability, maintenance—are put to the test.
Executive vice president Lee Si-hyuk, head of the Genesis Business Division, said, "Through motorsports, we will test, refine and strengthen the Genesis brand value," adding, "In Europe, we will be a brand that delivers performance while balancing comfort and quality."
For this event, Genesis fielded two GMR-001 hypercars (#17, #19) that it developed in-house. To increase touchpoints with European consumers, it also set up a large booth at the Circuit de la Sarthe, where the 24 Hours of Le Mans is held.
It also drastically changed its sales method. Genesis had been selling directly to consumers, with the manufacturer retaining price-setting authority and vehicle ownership. But starting this year, it is switching to a model using local networks. This is the same approach as in the U.S. market, where sales have risen rapidly.
In April, Genesis opened its first European dealership in Amsterdam, the Netherlands. In the second half of this year, it plans to add dealerships in Lille, France, and Rome, Italy.
The vehicles Genesis will lead with in European countries are its electric series. They include the small electric sport-utility vehicle (SUV) GV60, the midsize SUV GV70, and the large GV80 electrified model. This follows the rapid expansion of the EV market in all additional countries where Genesis is entering. Starting with the high-performance GV60 Magma, Genesis also said it will introduce to the European market a hybrid electric vehicle (HEV), an extended-range electric vehicle (EREV), and the flagship SUV GV90 in the second half of this year.
◆ Muñoz says "Goal is 350,000 global sales by 2030"
Launched as an independent brand in 2015, Genesis sold more than 220,000 vehicles last year. This year, it is targeting more than 225,000.
Muñoz said, "The Genesis brand achieved 1 million sales in the shortest time—7 years and 8 months since its launch," adding, "This is faster than Toyota's Lexus (nine years) and Tesla (12 years)." He added, "It is thanks to Genesis' lineup, and we will expand further."
However, the fact that 90% of sales are concentrated in Korea and the United States is cited as an issue to address. While an aggressive push to expand in North America has played a role, Genesis has posted weak sales in Europe as German brands such as BMW, Mercedes-Benz and Audi dominate the European luxury car market. Genesis' sales in Europe last year were 2,515 units on a wholesale basis.
With its Le Mans 24 Hours debut and sales network transition, Genesis plans to make Europe its third major market after Korea and the United States.
Muñoz emphasized, "Genesis is strengthening its presence in Europe through the European Technical Center, the Magma racing team, and dedicated dealerships," adding, "We will deliver above-average growth each year and achieve 350,000 global sales by 2030."