When Hyundai first started selling cars in the U.S., its offerings were perceived as little more than frugal econoboxes – a perception that was pretty much on point. But over the last few years the Korean automaker has been really stepping up its game, cultivating in its latest luxury offering — the Genesis sedan. Although the motoring press was unsure of how the public would react to a luxury Hyundai, the market has spoken and it looks as though Hyundai has its first ‘halo’ car.
Although the Genesis is the most expensive offering in Hyundai’s lineup – listing from $33,000 – it retails for as much as $26,000 less than its comparably equipped rivals – mainly from BMW , Lexus and Mercedes-Benz . With that fact in mind, Hyundai thought the Genesis would entice first time luxury buyers – those that aspire for all things luxury but don’t quite have the coin for the big time brands. However, Hyundai’s theory has proven incorrect since the Genesis hit the market in June.
Instead of attracting first time luxury buyers, the Genesis is actually attracting buyers that typically shop the top-tier brands. “We thought the vehicle would be a nice interceptor vehicle for someone looking to move up to the first luxury vehicle. What we found out is somebody looking for the first luxury vehicle needs the (established) brand,” David Zuchowski, vice president of Hyundai ’s North American sales, told Automotive News. “Conversely, we are attracting more people from BMW , Mercedes, who are probably tired of paying premiums for the brands.”
As such, Hyundai is now viewing the Genesis sedan as a halo model – one that generates a buzz about the brand and can help drive showroom traffic. When the Genesis coupe hits the market next year, the gap between Hyundai’s public perception and product perception could finally be erased – something the Korean brand is hoping for as it possibly looks to start a luxury division in the same vein as Toyota ’s Lexus brand in the coming years.
Hyundai is targeting a sales goal of 8,000 Genesis sedans this year, with 20,000 earmarked for 2009.
