Is Hyundai's Genesis Luxury Brand Going To Grow As Fast As Lexus Did In The 90's?

Is Hyundai's Genesis Luxury Brand Going To Grow As Fast As Lexus Did In The 90's?
Hyundai Motor Company, as many of you may have read by now, will launch its own global luxury brand in December, dubbed Genesis. By 2020, it will offer six models. It’s long been apparent that Hyundai had luxury aspirations – it has done its homework to develop what seems to be a reasonable approach around a clear brand and image target. Now, the hard work begins.

Hyundai is entering the luxury market in conservative, measured steps, including initially leveraging existing dealers and building up whatever level of cache the current vehicle has garnered, reducing cost but exposing potential by not launching with a purpose-built brand experience. Consider, though, the company has been running beta luxury tests for years with the Equus. The challenge next is to grow into the space of top-tier luxury over time, whether that happens completely by 2020 or later.

 


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cidflekkencidflekken - 11/5/2015 1:09:39 PM
+6 Boost
Agreed, no.

I don't think it will be as easy as Hyundai anticipates it to be. In order to approach it right, Genesis would need to distinguish themselves from all other luxury brands. But where exactly will they be able to do that? Hyundai has yet to be a front-runner in any single category in the industry. Yes, ,they brought more dynamic styling to the mainstream market, but now their own new products have become pretty generic and derivative. Lexus continues to the reliability leader. Mercedes, BMW, Cadillac, and Audi have incredible performance models. Tesla is leading the EV wave. Audi set the standard with high-quality interiors. Land Rover is all over the luxury SUV. Jaguar is a leader with exterior design. All are introducing incredible technology in their new cars, at a hectic pace. So, where exactly is the launching pad for Genesis to gain a foothold in an already-crowded, always advancing luxury crowd? Coming from a company that, even with its non-premium products, hasn't introduced anything groundbreaking to the industry. Don't get me wrong, they make very nice solid cars. BUT, so does Volvo, Lincoln, and Buick.


TomMTomM - 11/5/2015 3:33:35 PM
+6 Boost
Toyota had a reputation for quality and reliability before they jumped into Lexus.

Hyundai does not have that reputation.

So-their cars will have to be introduced in price ranges below the competition - which has pluses and minuses. People who buy Luxury cars don't want to be accused of buying the cheap ones.


7msynthetic7msynthetic - 11/5/2015 3:47:41 PM
+3 Boost
Different era and MUCH different competition.

IMO the best thing Highundye can do is change their name. Sounds like an animal on the Serengeti.


PUGPROUDPUGPROUD - 11/5/2015 4:02:22 PM
0 Boost
Will likely appeal to price conscience consumers looking for luxury at a bargain price. Will not beat luxury brands (M-B, BMW, Lexus) but has the potential to generate good volume with great styling and lower price point. Also can draw from current buyers of Korean cars looking to move up. If they get the price right they will take share from Ford, Buick and Chrysler too.


MDarringerMDarringer - 11/5/2015 6:54:46 PM
-1 Boost
It won't grow as fast as Lexus did because with Lexus, the Germans were way off their game then.

If marketed and priced right the Genesis could easily steal sales from the Charger and 300. The coupe could easily be pit against the Mustang/Camaro.

With the Genesis and the Equus it will also be about marketing them against German sedans one size smaller.

However, with Infiniti still trying to find an identity, Audi being strangled by Dieselgate, and Cadillac plunging into an ill-advised renaming scheme, Genesis does have ways to ramp up sales but they will need to MARKET THE CARS.

Currently there is virtually no marketing.


Dr550Dr550 - 11/6/2015 2:16:30 AM
-4 Boost
Lexus had a large Toyota customer base that was expecting more from the dealership service/experience and wanted more luxury than a Cressida, Camry, or Landcruiser had to offer. If Genesis is priced correctly, solid warranties, distinctive design, etc. they should be able to first pick-off Nissan/Infiniti buyers.


jameswisrikjameswisrik - 11/6/2015 8:32:29 AM
0 Boost
NO... BUT IF THEY HAVE a good design and reliability ...they will do very well. The designs of late is very good.

AT THIS point i would not consider it better than BENZ OR LEXUS.. but will be better than AUDI, INFINITI, BMW, LINCOLN, AND DEATH TRAP CADI.


dumpstydumpsty - 11/6/2015 2:52:24 PM
+2 Boost
Hyundai will have a heck-of-a-time trying to establish the Genesis brand as a real contender to the established luxury brands, especially in the US.

Yes, they're in the same position as Lexus....but that was 1995! To that extent, the perceived competition was a vastly spread-out grouping of existing luxury which NEEDED some new blood shot into the mix. Ford & GM were producing cheap trash & Chrys was trying to stay afloat (hmm...). The Germans were doing their thing but still had that stodgy ol-skool fromp. Lexus brought in the Asian side of luxury with a focus on tech advances.

Today, the market is over-crowded with too many brands & too many vehicles to choose from. Genesis will need to show that they're better than the rest which is tough...no halo cars.


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