In a crisis, there are always winners and losers. The auto industry faces a number of challenges and threats, while some of the world’s major economies could fall into recession in the coming months. In this context, it is interesting to see how some companies manage to grow and achieve success even in difficult times.
Genesis, Hyundai’s premium brand, is one of them. It was officially announced as an independent brand in late 2015 and launched its first model, the Genesis G90, in 2017. This comes years after Hyundai created the Genesis sub-brand as a “progressive interpretation of the modern self-propelled sports sedan.” And it’s worth it.
According to global data from last year, the brand has sold more than 200,000 new cars. The total is 58 percent higher than that recorded by Genesis in 2020. That year, it had posted a 55 percent increase compared to 2019, despite problems due to the pandemic. In 2018, Genesis sold 77,000 units.
Questions About Consistency In Product Launches
The main reason for continued sales growth lies in consistency in product launches. While the cars originally offered by the brand are not autonomous models, Genesis has already started working on a very interesting plan that includes several cars with their own technology and personality. Since its founding, Genesis has delivered five new models and two major redesigns of the previous Hyundai model.
The current lineup includes three sedans targeting three different segments, one wagon for the European market, and three SUVs. All positioned on the same level as a brand like BMW or Mercedes-Benz.
This is a great way to create and position a brand new car. However, it is not the only success factor. Genesis is also working in key markets while gradually arriving in other markets. For example, from the start, it was clear that the United States would be the ideal point of reference. Without this market, it is quite complicated to survive for any premium brand. South Korea, known for buying large sedans, is also key.
After securing these two important markets, Genesis began looking overseas. It entered Europe in 2021 and just arrived in China. Today, without the last two markets, Genesis outperforms other traditional premium brands. And is expected to increase its share again with the launch of more products in other segments and brand expansion in China, the world’s largest market for premium cars.
Examples For Traditional Premium Brands
This success story, at least so far, should serve as an example to other premium brands struggling for their place. As is known, competing with BMW, Audi, or Mercedes is not an easy task. But it’s not impossible. Tesla, Volvo and Lexus can tell you how to grab your fair share of this lucrative market.
The way Genesis develops its strategy seems to be setting up another winning approach for a place. Brands like Jaguar, Infiniti, and Alfa Romeo are to behold.
The author of the article, Felipe Munoz, is a Automotive Industry Specialist JATO Dynamics.