Hyundai banking on Genesis for luxury brand
May 9, 2008 by Alborz Fallah
Toyota, Lexus; Nissan, Infinity; Honda, Acura; when is it Hyundai’s turn? The Korean manufacturer is experiencing a period of unparalleled success with yearly sales records and joined with sister company Kia, is now the sixth largest manufacturer in the world. But it’s missing something, a luxury brand.
We’ve all seen the Genesis Sedan and Coupe, and Hyundai’s 4.6-litre V8 Tau engine, but so far we’ve been told its not coming to Australia, nor is it going to Europe for that matter. The reason? Hyundai is not yet confident.
The Genesis has already gone on sale in South Korea (Hyundai’s homeland) and will be sold in China as well as the Middle East and Russia. Following that there will be a long-wheel-base version for Korea and the Middle East.
Hyundai is taking the next-step of entering the Western market with a luxury brand with extreme caution, noting the dismal sales of Lexus in Europe as one of the reasons. If Lexus, with the might of Toyota is having issues in Europe, what chance does Hyundai have?
There is also talk of a more powerful version of the 4.6-litre Tau V-8, it may be bored or stroked (or both) to 5.5-litres to power the LWB version or maybe high-performance variants.
According to MotorTrend, Hyundai was also considering releasing a convertible in 2010 but realised the cost is far too high given the competition.
There will be a three-four year wait period while Hyundai analyses the success of Genesis before deciding to create its own luxury brand and compete against the Germans and Lexus.
Lexus started some 19 years ago and is now recognised as one of the leaders in luxury motoring, but the Japanese brand was dismissed by the Germans when it first hit the market, will anyone dare dismiss Hyundai when it joins the fight?
When should Hyundai enter the luxury market?
Print it: 
Hyundai Should Launch their luxury brand in either 2010 or 2013 on their 45th Anniversary.
They have the resources now to create a successful luxury brand. As a Current Hyundai Employee, each year our brand grows at a rapid rate, products improve greatly every facelift or new model release (XD Elantra Vs i30) (EF-B Sonata Vs NF Sonata) so on… Now on the 40th Anniversary to launch Genesis (Sadly not here. Yet….) i think another 5 years and we WILL BE A FORCE not to reckon with.
Most importantly our Quality of Product Build is outstanding, proven and proven with any quality study and warranty claims becoming minimal.
Unfortunately here in Australia Hyundai is not percieved the way it is in US, where cars like Sonata and Azera (Grandeur) sell combined well over 10 thousand units a month sometimes 15 thousand. Grandeur deserves a lot more success here in this country and hopefully with the 2009 Grandeur being launched here next month. Success will be given to our current luxury model.
Hyundai. Truly Future Driven.
lol, anti spam word, hyundai, I had to post.
I hope the luxury brand goes well for Hyundai. I think that if they price the vehicles right (which they probably will) and keep up the improving build quality and reliablity it will go reasonably well for them. Some growing pains will occur, but all in good time.
I’m not sure a V8 is the way forward considering increasing fuel prices and that the bulk of hyundai buyers are value conscious. It would serve them better to offer a medium capacity supercharged 6. This would offer some performance levels (good torque) without the great thirst.
I can’t see too many people opting for a korean-made V8 given the options available currently in the market. There is also the issue of reliability as it enters the market as an unknown.
Hey Chad,
go to http://www.inyourdreams.com
Uh “If Lexus, with the might of Toyota is having issues in Europe, what chance does Hyundai have?”.
That I would say is a bit of an overstatement. There are many Lexus models (particularly the RX & IS range) on the roads here. They are considered nearly an equal to BMW Merc’s with folks choosing Lexus over these for more exclusivity.
However Lexus is let down by no or crap diesels.
Sorry bit off Topic there. Back on though. Hyundai have not made huge impressions to date, so I guess luxury models here (UK) or Australia its too young in their lifetime for a luxury model. Asia is big enough to warrant one in its own right.
Hey No Name,
Looks like there’s a similar trend, here in AU both the IS and RX are also the most popular models (funnily enough I have one of each ha ha [IS250/RX330]).
Just one thing though, Lexus only make one diesel and that is the IS220d and from a value perspective, it gives the 320d a good run for it’s money. Also, i think the general consencus is that this one and only diesel engine hurts the Lexus brand a bit. That is from the perspective that Lexus are known for luxury and only now are people realising that diesel is no longer just for trucks.
Camski – Good stuff mate.
However the Lexus IS220D has acrap engine. Yep the stats might stack up but Lexus seriously messed the gearing up In gear acceleration was absolutley awful, so bad that Lexus chose to rip people off by releasing a ’sport’ version with altered gearing….and charged the premium too. Even than from what I’ve read its far from perfect and nowhere near as good say BMW, Merc or PSA’s efforts.
Not a good first diesel effort compared to say Honda and recently Subaru.
yeah its been brought up before..
in the states, they are wondering who is willing to buy a 50K “Hyundai”…
In Oz, that would be around 60~70K…
Lexus, Audi, BMW entry models start at around that mark.
Obviously the entry “Hyundai Genesis” will be around 5K under or so…
Is it justifiable?
Not yet I think…
The real problem is with Hyundai is they are producing cars for consumers, not drivers. Not one of their vehicles (ever) has inspired me to race down to the local Hyundai Dealer and want to test drive it. They have always made and always will make (not just in my eyes but in most people who consider themselves ‘drivers’) absolute dross. As for Chad (obviously the PR rep for Hyundai Australia) Quality surveys mean diddly-squat. If you pay 20 grand for a car aimed at a a 30 grand price bracket and its chock full of buttons and knobs (no,no not the drivers – but the switches) then your expectations will be low and therefore a higher survey result is almost expected. But if one pays 100000k for a car and the radio has trouble picking up AM (for example) the survey results will be dire. They should be indexed on price and volume and I can guarantee Hyundai will be right up there with the likes of Tata and Mahindra. Now thats future driven!
I better see this Hyundai Coupe Turbo in Oz by the end of ‘09 or I’ll crack it.
Someone needs to sell something exciting, affordable and fast in this country before we all turn into Camry lovers ;).
Problem Is Fenno, todays consumers of “Drivers” are becoming a smaller breed, however Hyundai is aware that our current situation of vehicles are not “driver’s” car (Although Tiburon is very underated… and yes not overly powerful, but still a great car to DRIVE, and i do mean Drive) however tell me Prior to launching TRD with Aurion and now Hilux. Toyota is no.1 manafucturer currently, do they have drivers cars?? no do they sell to the masses. Yes of course. Do we Want to be like Toyota.. Well Yes and No, however with the Soon to be launched “Drivers Cars” Genesis Coupe RWD and Genesis Sedan. this will be one Hyundai, you will be racing down to slip behind the Drivers Wheel, and say “Shit I LIKE”…
P.S. Not a PR Rep for Hyundai. Just very passionate about the brand..
This car has a face that even its mother can’t stand.
Wouldn’t touch it from fear of dying by ugliness.
Agree CHAD…..some of these tossers are stuck on one car maker all the time and wont look elsewhere. All I will say is Hyundai and Kia alliance sold 6.9million cars during 2007; Toyota think were 9.2million. Not bad for a relative newcomer as that is the reality!
They’re not ugly, Im actually suprised, they’re pretty neat looking.
Besides, ugliest car in history, the new Commodores. Hands down.
Naughtyius, I’d disagree. I’d say the overwhelming factor in the reason Hyundai and Kia sold so many cars is, undoubtedly, price.
Chad was alluding to the fact that the Genesis Coupe & Sedan are ‘drivers cars’. I’d say that 5% or less of the cars either Hyundai or Kia sold to reach that 6.9 million mark (ie current or passed models) are ‘drivers cars’.
But you’re also right – being stuck on one brand for the sake of brand loyalty is a really stupid thing these days… especially when so many manufacturers are providing either safe, technologically advanced, luxury, value for money or bang-for-your-buck cars.
I still think this car is one of the ugliest things I’ve ever seen. There are implied lines everywhere – the design simply makes no sense.
I would buy this, if the interior didn’t look like shit, and it wasn’t a Hyundai.