The Genesis brand from Hyundai is an unexpected player in the U.S. luxury car market.

• The South Korean luxury brand Hyundai's Genesis was launched in the U.S. nearly eight years ago, but it has proven itself worthy in the domestic market despite initial skepticism.
• The company anticipates a steady increase in sales with an annual growth rate of at least 10% for the next five years.
• Genesis plans to boost its short-term growth through the release of new "Magma" performance models and a possible three-row SUV.

In 2016, when launched its Genesis luxury brand in the US, many doubted the South Korean automaker, known for budget vehicles, had the expertise to succeed in the luxury market.

Randy Parker and Claudia Marquez, both auto industry veterans, were among the skeptics. They were working for Nissan's luxury Infiniti brand at the time and have since made the leap over to Hyundai Group, with Parker now leading the Hyundai brand in the U.S.

"We were both thinking, 'Wow, how are they going to succeed with this new brand in such a competitive market?' It's not that we have anything against it, it's just that it's a complex situation," Marquez said at the New York International Auto Show last week.

Genesis has thrived in the U.S. luxury market with unique styling, unexpected comfort, and well-ranked quality, offering both gas-powered and electric vehicles.

Since 2022, the Genesis brand has surpassed the longstanding Infiniti brand in annual U.S. sales. It is predicted that the brand will experience annual double-digit growth for the next five years, as stated by Marquez, who was appointed Genesis' North American chief operating officer in October 2021.

"We must surpass the luxury market significantly and maintain our strength," she stated. "It's a long-term race, not a short sprint."

In late 2015, Hyundai announced that Genesis would become its own brand, and since then, its U.S. sales have grown from fewer than 7,000 vehicles in 2016 to more than 69,000 last year.

Growing awareness

While the growth of Genesis is predicted to be strong, it will be limited to maintain the residual values and pricing of the vehicles.

While Muñoz stated that brand expectations remain high, the company's volume goals for the U.S. are more aligned with competitors like Porsche rather than Lexus and Mercedes-Benz, which sell hundreds of thousands of vehicles annually.

Although we have a long way to go, we are not a mass brand, so we don't have big volume aspirations. However, there is still a significant way to go, as Muñoz, CEO of Hyundai Motor and Genesis Motor North America, stated during a separate interview at the show.

In 2023, the brand's closest competitors in terms of sales were Land Rover (71,727 units), Porsche (75,415 units), Lincoln (81,818), and Volvo (128,350). Genesis experienced a 23% increase in sales from the previous year, with a total of 69,175 vehicles sold.

Awareness is one of the greatest challenges for Genesis, as Marquez stated. Stephanie Brinley, the principal automotive analyst at S&P Global Mobility, concurs with this viewpoint.

"It has gained credibility and is respected, but it needs to expand its audience," Brinley stated. "Although it is respected, not enough people are aware of it. It occupies a unique space right now."

Performance models

Genesis aims to boost awareness and sales through new "Magma" performance models by introducing a performance variant for each production vehicle, as announced last week at the New York auto show.

Genesis unveiled a spacious all-electric SUV concept last week, and Marquez hinted at the possibility of expanding the brand's lineup with a three-row SUV "sooner rather than later."

Genesis' 2024 lineup includes three sedans (G70, G80, G90) and three SUVs (GV60, GV70, GV80), with the G80, GV60, and GV70 also available as all-electric vehicles. The starting prices for these vehicles range from approximately $41,500 for the G70 to more than $89,000 for the G90.

Since its launch in 2016, the Genesis G80 has been the top-selling model in the brand's lineup worldwide, with 390,738 units sold across the global market, including electrified versions.

A new $7.6 billion factory in Georgia is expected to commence production later this year, potentially increasing the brand's local manufacturing.

Genesis will be a "central emphasis" of the plant, in addition to producing Hyundai and Kia vehicles. Currently, the brand manufactures the GV70 gas and electric SUVs at an Alabama plant, while other models are imported from South Korea.

"The products are very strong and welcomed by consumers in the U.S.," Muñoz said. "The U.S. market is the most important for Genesis."