There are always winners and losers from a crisis. The car industry deals with a bunch of challenges and threats. In the meantime, some of the major economies of the world are expected to enter recession in the coming months. Within this context, it is interesting to see how some companies manage to grow and win from the difficult times.
Genesis, Hyundai’s premium brand, is one of them. It was officially announced as an independent marque in late 2015, launching their first model, the Genesis G90, in 2017. This decision arrived years after Hyundai created the Genesis sub-brand as a “progressive interpretation of the modern rear-wheel drive sports saloon”. And it paid off.
According to the global data from last year, this brand sold a bit more than 200,000 new cars. The total was 58% higher than what Genesis sold in 2020. That year, it had already posted a 55% increase compared to 2019, despite the pandemic problems. In 2018, Genesis sold 77,000 units.
A matter of product launch consistency
The main reason for the continuous growth in sales is the products launch consistency. Although the initial cars offered by the brand were not stand-alone models, Genesis started to work on a very interesting plan that includes several cars with their own technology and personality. Since its foundation, Genesis has presented five all-new models, and two deep restylings from the previous Hyundai models.
The current lineup includes three saloons targeting three different segments; one estate for the European markets; and three SUVs. All of them positioned at the same level of brands like BMW or Mercedes.
This is the right way of creating and positioning a new car brand. However, it is not the only factor of success. Genesis has also worked on key markets while it gradually arrives in others. For example, since its creation it was clear that the United States would be its haven since the beginning. Without this market, it is quite complex for any premium brand to survive. Then it had its home land, South Korea, known for buying big saloons.
After securing these two important markets, Genesis started to look abroad. It entered Europe in 2021, and has just arrived in China. Today, without the last two markets, Genesis outsells other traditional premium brands. It is set to climb more positions as it launches more products in other segments and the brand takes off in China, the world’s largest market for the premium cars.
An example for other traditional premium brands
This case of success, at least until now, should become an example for other premium brands that have struggled to gain traction. It is widely known that competing against BMW, Audi or Mercedes is not a simple task. But not impossible. Tesla, Volvo and Lexus can tell how to grab a decent piece of this profitable market.