Genesis, Hyundai Motor's premium brand, is accelerating its push into the European market to overcome sluggish global sales. The need for new growth drivers has become urgent as the brand's multi-year growth streak reversed last year and it recorded a double-digit sales decline this year as well. To lay the groundwork for a turnaround, Genesis opened Europe's largest showroom in France and is significantly expanding its sales countries and dealer network.
According to industry sources on the 12th, Genesis's global sales from January to September this year totaled 142,122 units, down 12.6% from 162,658 units in the same period last year. In August, which was directly affected by strikes, sales fell sharply by 52%, reaching only 8,578 units.
Annual sales performance also turned to a decline last year. After surpassing 200,000 global units for the first time in 2021, Genesis grew steadily to record an all-time high of 229,532 units in 2024. However, last year's sales dropped by 3.8% from the previous year to 220,751 units.
Last month, Genesis's domestic sales also fell by 34.4% year-on-year to 5,942 units. Even the U.S. market, which had shown steady growth, saw a 5.6% decline to 6,623 units. While domestic sluggishness persists, sales in the core U.S. market have also recently slowed.
This is the backdrop for Genesis turning its eyes toward Europe. Last year, Genesis's European sales were just 2,476 units, accounting for only 1.1% of total global sales. This level is about 3% of its U.S. sales (82,331 units). Although it first entered Europe in 2021, the brand has struggled to expand its foothold due to the strong market dominance of German premium brands and a limited sales network.
Genesis's strategy is to overcome these limitations by simultaneously expanding its sales regions and distribution channels. On the 5th (local time), it opened its first showroom in France in Villeneuve-d'Ascq, near Lille, in partnership with local automotive distributor GGP Auto. At approximately 480 square meters, it is the largest Genesis showroom in Europe. Building on this, Genesis will target local customers by leading with electric vehicles such as the GV60, GV60 Magma, electrified GV70, and electrified G80.
The number of European countries where Genesis sells is also growing rapidly. After beginning sales in Germany, the U.K., and Switzerland in 2021, the brand entered France, Italy, and the Netherlands this year. Following Spain in the fourth quarter of this year, it plans to expand into Poland, Portugal, Denmark, and Austria next year, increasing its European sales countries to 11.
The annual new car market size in the four newly entering countries is approximately 1.29 million units, of which electric vehicles account for about 280,000 units. In particular, electric vehicles made up 68.5% of new car sales in Denmark last year. In Poland, electric vehicle sales increased by 161.5% from the previous year. Genesis is committed to building its sales foundation centered on countries where electrification demand is growing rapidly.
The brand is also changing its local sales approach. Initially, to build brand image upon entering Europe, Genesis adopted a direct-sales model where the manufacturer sold vehicles directly. However, it is transitioning this year to utilizing local dealers. After opening its first dedicated dealer in Europe near Amsterdam, the Netherlands, in April, it expanded its sales network to Italy and France. The goal is to secure more than 50 sales hubs and over 200 service hubs across Europe by 2027.
Product strategy is also being diversified to meet local demand. In addition to its existing electric-vehicle-centric sales strategy, Genesis is adding the HYBE RWD model and strengthening its premium image through its high-performance brand, Magma. Participating in the FIA World Endurance Championship (WEC) starting this year is also part of a strategy to raise brand awareness among European consumers. Through such market expansion, Genesis plans to boost its annual European sales by 2030 to over 12,000 units, roughly five times last year's performance.
in INDUSTRY
