Hyundai To Challenge BMW, Mercedes With Genesis Sedan In Europe
Set to be introduced to the European premium market at the Geneva Auto Show next week, the Hyundai Genesis will be aimed at establishing a foothold for the automaker in the market against BMW and Mercedes upon arrival in showrooms in June, particularly in Southern Europe, Slovakia and the Czech Republic.
Automotive News Europe reports Hyundai expects to sell 1,000 of the premium sedans to a targeted group of customers who are familiar with the brand, especially those ready to attach diplomat plates to their new purchase. No price has been announced thus far, though the automaker has pegged the BMW 5 Series and Mercedes E-Class as rivals to their Genesis.
Overall, Hyundai aims to increase their market share on the continent from 3.4 percent currently to 5 percent by 2020. Though sales fell 5.5 percent last month, there are already 6 million vehicles on the road, with 70 percent under seven years of age. Customer retention also increased, moving from 36 percent in 2010 to 50 percent in the present, which benefits Hyundai in Europe according to regional head Allan Rushforth:
Working on loyalty is really fundamental to the economics of our business, and the success of our business in Europe. We’ve been a conquest brand to get to this point, but we’ve got to evolve and mature to balance retention and conquest in the future.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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Am I the only one who's sick of LED 'eyeliners?'
"Hyundai expects to sell 1,000 of the premium sedans" Whoever suggests creating a new brand and dealer network for 1000 cars is worthwhile, has no idea of what the car industry cost. Better sell them under Hyundai name (and use it as halo car) and take small losses, then creating a new brand, especially a luxury brand. People that "need" the BMW/Audi/Mercedes name wouldn't buy a Hyundai, nor a new artificial brand that belongs to Hyundai. So those costumers are lost anyway. But there is the "Skoda = smart guy" group of people that would buy a Hyundai if it is competitive. At 1000 vehicles this is a money loss one way or another... it is to sell other Hyundai cars. Hope they fare better than VW with Phaeton....
In the American market, cars compete more on price than they do on size, construction or class. The outgoing Genesis, as it stands, does not compete with other midsized-luxury RWD cars like the BMW 5-Series, Lexus GS and Mercedes-Benz E-Class. The Genesis competes with entry-level luxury cars like the Acura TL, BMW 3-Series, Infiniti Q50 and Lexus ES...because buyers in those segments might cross-shop the Genesis. When, ultimately, the Genesis doesn't do much to stand out beyond the RWD midsized mainstays, it probably isn't going to conquest those buyers and will always be thought of as being of a lower class than one of those cars.
Hyundai/Kia styling department - Scissors and a glue stick.