Genesis’ stellar entry-level sedan, the G70, may be coming to the end of the road. According to CARandDRIVER, Hyundai’s luxury subdivision may can the sedan in a bid to try and move upmarket and become more exclusive, which means cutting out some of its more affordable models. However, the decision hasn’t been made as the company’s product planners are reportedly at a decisive crossroads. At the moment, they’re trying to figure out the right direction for the brand and if moving upmarket and discontinuing the G70 would be the right move.
The Korean luxury carmaker introduced the G70 back in September 2017 as a 2019 model-year car here in America as its answer to the BMW 3 Series, Mercedes-Benz C-Class, Audi A4, and Lexus IS. It’s built a solid reputation and grown to be a formidable rival in the hugely competitive compact luxury sports sedan segment. But as it reaches the age of six years old here in America, its future came into question as it’s reaching the end of its series production lifecycle.
Key Takeaways
- The future of Genesis’ BMW 3 Series/Mercedes-Benz C-Class/Audi A4/Lexus IS fighter, the G70, may be in jeopardy
- Genesis is trying to determine where it places in the market
- Aspirations to move upmarket could mean fewer affordable models, more exclusivity
Genesis May Concentrate On G80, G90, And SUVs If They Shift Upmarket
Genesis recently held a media event in its home market of Korea celebrating its first decade in existence. During the event, Genesis’ global product chief, Marc Choi, hinted at a potential shift in product strategy and explained that there’s a bit of an ongoing discussion happening at the brand’s executive level, specifically regarding where Genesis sees itself being positioned in the market overall.
That’s where the focus on the G70 came about, which is the automaker’s cheapest and most affordable model. In order to move upmarket and become more exclusive, it needs to reduce the availability and ease of entry into the brand, which is the whole point of becoming more exclusive.
Increasing exclusivity, however, is a double-edged sword. It not only reduces sales and profitability, but it also offers the potential to build brand equity and value. The more exclusive the brand is, the more unique it’s perceived. And for buyers of luxury vehicles, exclusivity is a draw when you can own something not many other people can get.
“It’s very attractive to think, okay, let’s do a front-wheel drive, $45,000 or below model, but we want to avoid making that hasty decision,” Choi told reporters at the event. “Our goal for the brand is to pull up the brand equity, so we’re resisting at the moment. So even within our lineup, we want to focus on some of the larger products like G80, GV80, and G90 series where we can make more product and equity for the brand.”
Genesis Got The Idea Of Becoming More Exclusive From Its Success In The Middle-East
Ever since Hyundai began experimenting with luxury aspirations, with the first Hyundai Genesis sedan and coupe and the flagship Hyundai Equus from the late 2000s through the 2010s, the company kept the ball rolling to later split the Genesis nameplate into its own luxury subdivision. It was basically Hyundai duplicating what Toyota did with Lexus in the 1980s.
Genesis moving upmarket means that its value-packed and driven luxury cars may no longer be as accessible as they are today.
Although the roll-out wasn’t as swift, Genesis has since still benefited from an enormous amount of unexpected success. It’s grown so much, that Genesis is even perceived as an ultra-luxury brand in the Middle East. And for a region where the money flows like water…er….sand, marking high in the eyes of affluent Middle Easterners means there’s room for even more growth, especially if it means catering to the ultra-rich of the region.
According to Genesis, its G80 and GV80 and even G90 models are some of the most sought-after among rich Middle Eastern customers. So much, that Genesis even established a “one-of-one” program specifically for that market.
“We always consider [our product lineup], and we want to create potentially a next-generation G70 with a little bit more affordable price range, but we need to compete within our sister brands as well, so there needs to be a kind of balance,” Choi concluded.
TopSpeed’s Take
Genesis moving upmarket means that its value-packed and driven luxury cars may no longer be as accessible as they are today. And they are absolutely excellent alternatives to the proverbial European and even Japanese staples. But if the company can continue its successful growth and start to encroach into ultra-luxury territory, more power to them. But that means the masses will miss out on some truly fabulous automobiles.
Source: CARandDRIVER
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