In the global mass-market car sector, Hyundai Motor Group's luxury brand Genesis is gradually losing ground. Hyundai Motor plans to roll out the brand's first large electric flagship sport utility vehicle (SUV), the GV90, in the second half and add hybrid models to improve sales performance.
As of the 27th, according to the auto industry, Genesis' global sales in the first half of this year totaled 103,483 units, down 6.1% from a year earlier. In particular, in the domestic market, which accounts for half of total sales, sales fell 23% year over year to 47,024 units.
In the United States, sales improved. In the first half, Genesis sold 39,088 vehicles in the U.S., up 4.5% from a year earlier. The midsize SUV GV70 recorded the highest sales at 17,324 units.
However, Genesis' market share in the U.S. remains far lower than that of other luxury brands.
Toyota's luxury brand Lexus sold 169,712 vehicles in the U.S. in the first half, more than four times Genesis. The upper-midsize SUV RX hybrid sold 59,904 units in the half, up 13.3% from a year earlier. The midsize SUV NX hybrid also sold 30,763 units in the same period, far more than the Genesis GV70 in the same class.
German luxury brands also performed well. BMW's U.S. sales reached 186,944 units in the first half. Sales of the midsize SUV X3 were 37,671 units, up 29.8% year over year. The BMW X5, which competes with the GV80, posted sales of 41,554 units in the same period, up 23.7%.
The apparent reason Genesis' global sales slipped in the first half was production disruptions. After a major fire broke out in April at Anjeon Industry, a parts supplier to Hyundai Motor, Genesis also failed to receive timely supplies of engine valves and other parts. The resulting reduction in operating profit is estimated at about 200 billion won.
Many in the industry say the lack of hybrid models also weighed on Genesis' weak sales. While demand for electric vehicles has waned in recent years, demand for hybrids has surged sharply in major global markets, including the United States. Until now, however, Genesis has produced only gasoline models and EVs.
According to CNBC, a U.S. business outlet, U.S. hybrid sales in the first half rose about 20% from a year earlier, accounting for 15.4% of total new-car sales—about three times EVs. In Europe, hybrid sales reached 2,198,148 units in the same period, up 13.2% year over year, making up 37.4% of total sales.
Genesis plans to launch the brand's first hybrid model, the GV80 hybrid, in the second half. The upper-midsize sedan G80 is also expected to begin sales of a hybrid model within the year. There are projections that Genesis exports will increase markedly not only in the domestic market but also in the United States.
The GV90 will also make its debut in the third quarter this year. Although the GV90 is a large electric SUV with limited demand, many analysts say it will further elevate Genesis' brand value in the global market and positively help reverse overall sales performance.
Genesis also plans to unveil an extended-range electric vehicle (EREV) in the second half of next year. Unlike a plug-in hybrid (PHEV), in which the engine and motor drive together, an EREV runs solely on a motor like an EV. The internal combustion engine in an EREV is used as a generator. When the battery is low, the engine acts as a generator to supply power to the battery.
An industry official said, "Back-to-back launches of hybrid models and the EREV model slated for next year will help revive Genesis' sales." The official added, "Genesis' main sellers, the G80 and GV80, are more than six years old and have grown dated, and there will be limits to lifting sales until fully redesigned models arrive."