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Genesis Gaining Traction in Luxury Segment

October 9, 2017 0 Comments

Genesis, a luxury vehicle brand launched by Hyundai, is becoming a real competitor among luxury cars now that it’s dropped its “cheap car” image. The brand’s recently-unveiled G70 model doesn’t hurt, either, but Genesis still has a ways to go within the industry.

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One issue the luxury brand has is that Genesis cars are sold exclusively at Hyundai dealerships. According to a report by Automotive News, the company has plans to rectify this.


In the report, Hyundai said it plans to open up Genesis dealerships by 2020, and Genesis general manager Erwin Raphael said the brand will establish shop standards by the end of 2017 to help with the transition.

“The reality is, many, many luxury customers tell us they love our products, they’re amazing, but I’m not going into a Hyundai store to buy it,” Raphael said at the G70 launch.

Luxury customers tend to lean toward a higher-quality experience, and thus customers interested in a $40,000-$70,000 vehicle don’t want the same buying experience as those looking to buy a vehicle under $20,000.

Customers who come into dealerships looking for non-luxury vehicles are asked questions such as, “How much would you like your monthly payment to be?” and, “What can I do to get you out the door in this car today?” Such questions aren’t fitting of a luxury automaker; Lexus and Porsche, for example, don’t “hound” prospective buyers about running credit before a test drive.

Additionally, Genesis’s sales network is a little confusing at present: while all 835 Hyundai dealerships sell the G80, only 352 dealerships carry the G90 model, which requires having a special showroom within the showroom.

As for its 2020 plans, Genesis is expanding its inventory to six models – a good reason to move toward standalone dealerships. It’s a good move on the brand’s part, helping it continue to gain prestige in the luxury retail segment.

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The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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