Genesis, Hyundai Motor Group's luxury brand, declared it will step up 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 brand will expand the number of European sales countries from the current seven by adding four, including Poland and Portugal, to a total of 11, and will boost sales by establishing more than 50 sales outlets and 200 authorized service centers.
◆ The key strategy to support fivefold growth is "24 Hours of Le Mans"
Genesis plans to raise its profile by entering the 24 Hours of Le Mans. In the hypercar class of the 24 Hours of Le Mans, which will be held for two days starting on the 13th, Genesis' Magma racing team will participate for the first time among Korean automakers. The 24 Hours of Le Mans is an extreme race in which three drivers in total take turns driving a 13.626-kilometer track nonstop for 24 hours. It is a stage where automakers' capabilities in engine performance, durability, and maintenance are revealed.
Lee Si-hyeok, executive vice president and head of the Genesis business division, said, "We will test, refine and strengthen the Genesis brand value through motorsports," adding, "In Europe, we will be a brand that delivers performance while balancing comfort and quality."
For this race, Genesis fielded two of its in-house developed GMR-001 hypercars (#17, #19). 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 overhauled its sales method. Genesis had sold directly to consumers with the manufacturer holding pricing authority and vehicle ownership. But starting this year, it is shifting to a sales method that leverages local networks. This is the same model as in the United States, where sales have grown rapidly.
In April, Genesis opened its first European dealership in Amsterdam, Netherlands. In the second half of this year, it plans to add dealerships in Lille, France, and Rome, Italy.
The vehicles Genesis will put forward in European countries are its electric vehicle 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 electric vehicle market in all additional countries Genesis is entering. Starting with the high-performance lineup GV60 Magma, Genesis also said it will introduce to the European market an HEV to be launched around the second half of this year, an extended-range electric vehicle (EREV), and the flagship SUV GV90.
◆ Muñoz says "Aim to sell 350,000 units globally by 2030"
Launched as an independent brand in 2015, Genesis sold a little over 220,000 units last year. This year, it is targeting around 225,000 units.
Muñoz said, "The Genesis brand achieved 1 million sales in the shortest time, in 7 years and 8 months since its launch," adding, "This is faster than Toyota's Lexus (9 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 a challenge to be addressed. While this is partly due to an aggressive push to expand in North America, Genesis has recorded weak sales in Europe as German brands such as BMW, Mercedes-Benz, and Audi dominate the European luxury car market. Genesis' European sales last year were 2,519 units on a wholesale basis.
Through its Le Mans debut and the shift in its sales network, Genesis plans to make Europe its third key market after Korea and the United States.
Muñoz emphasized, "Genesis is building its presence in Europe through the European technical center, the Magma racing team, and dedicated dealerships," adding, "We will deliver above-average growth every year and achieve global sales of 350,000 units by 2030."