Car prices are always at the center of the topic. When consumers buy a car, the so-called’cost-performance ratio’ is also considered because price is an important and sensitive factor. Recently, among them, the price of domestic cars is a hot topic. I wish it was a good story, but in reality it was not. This is because there is a story saying, “Imported car prices are almost the same, but domestic car prices have increased remarkably”.
But there is one strange thing. Despite the soaring price of domestic cars, the sales volume is steadily rising. In particular, it is said that there are many people who choose the domestic brand Genesis, leaving Mercedes-Benz of 100 years history behind even at the same price. How did it happen? Today’s AutoPost Issue Plus takes one step further into the reason why domestic consumers choose Genesis instead of Mercedes.
Written Editor Jeong Ji-hyun
Imports downsizing
6-cylinder to 4-cylinder engine
There is a story among consumers that “the price of imported cars released these days is not the same as before.” It means that the price range is lowering, unlike domestic cars. The recent change in the engine downsizing of imported cars from 6 cylinders to 4 cylinders is also contributing to this price decline. In fact, it is not just a C class, but the new C class from the AMG brand, a symbol of high performance, also followed the trend of downsizing.
It can be seen that the engines that are released recently have an engine displacement of 2000㏄. Instead of a six-cylinder engine with more than 3,000 cc, which was the same as the standard for high-end mid- to large-sized sedans 10 years ago, most of them have reduced their displacement to ‘2-liter class’. There is a criticism that “The era of deciding the’class’ of cars only with displacement is over.”
Domestic cars to improve marketability
With all my strength
On the other hand, with the addition of various electronic equipment, domestic car prices are on the rise unlike Imports. Take the recently released GV70, for example. GV70 is equipped with the latest specifications such as’In-vehicle Easy Payment Genesis CarPay Interlocking Fingerprint Authentication System’ and’Advanced Rear Seat Passenger Notification’ based on radar sensor. Even these features are said to be the world’s first technology applied to the GV70.
It is because it is equipped with a large number of the latest technologies, and even though it is a mid-sized SUV, the price is considerable. The price of the top trim plus full options is close to 80 million won. With the creation of a separate premium brand called Genesis, the price range has increased considerably. In the past, Imports were the exclusive property of the rich, but now it is not an exaggeration to say that the era of buying Imports has arrived because there is no money.
Actually with Genesis
I compared the prices of German cars
Due to the downsizing of imported cars, the installation of advanced specifications of domestic cars, and the strategy of premium brands, their price ranges became quite similar. In fact, the price difference between Genesis and German cars is not large even when compared in the same class. The GV70’s full option price is close to 80 million won, so let’s look at that standard.
First is the Mercedes-Benz GLC. As the name suggests, it is a C-class SUV and belongs to a midsize SUV. Prices range from 67.5 million won to 129.1 million won. For a similar price point, BMW’s X3 cannot be missed. The X3 is a mid-sized SUV that first appeared in 2003, and is priced from 64.1 million won to 112.5 million won. Of course, the best price is a German car, but if you choose it well, you can really buy a Mercedes with GV70.
1. As a premium brand in Korea
A successful position
If the price is similar, it is likely to choose German cars in general, but Genesis seems to have overwhelming sales in Korea. In fact, in July of this year, Genesis has a history of defeating Mercedes-Benz in four years and ranking first in domestic luxury car sales. What is the reason? There may be many reasons, but for today, let’s look at three reasons.
The first reason is that Genesis’s premium image is somewhat familiar, at least in Korea, as there is no recognition overseas. In fact, there is a perception that “Genesis is the car that people who have succeeded to some extent in Korea ride”. In the past, Granger was a symbol of success, but now Genesis is playing that role.
2. Comparable to imported cars
Productivity improvement
As mentioned earlier, the second reason is that marketability is improving day by day. In the past, it was Genesis, which was mainly evaluated for its cost-performance ratio, but in fact, many netizens have recently commented that “the marketability has improved enough to give up imported cars.”
In other words, it can be seen that it is now being evaluated as having a design and marketability comparable to imported cars. For example, the marketability has improved, such as the introduction of the indie order system, which was found only in Imports. Of course, aside from the controversial quality issues.
3. Convenient accessibility
Worked out
Some say that the fact that Genesis uses Hyundai Motor’s exhibition hall and Blue Hands “destroys the image of an independent premium brand.” But let’s look at it from a different perspective. Rather, if you think on the contrary, this part can act as a convenient accessibility and come to real consumers.
Premium brands emphasize a variety of features and benefits, superior technology and performance, and differentiated brand values and experiences. Here, unlike luxury brands, it has a reasonable price point and convenient accessibility. Of course, independent brand image and marketing are important, but in reality, it is highly likely that convenience will be high to meet Genesis and fix it if you go to Hyundai Motor Showroom and A/S center. For this reason, some respondents saying, “Genesis seems to have utilized this accessibility well.”
Started in 2015
Premium brand history
In 2015, Hyundai Motor Company succeeded in making Genesis a premium brand. After that, G70, G80, G90, GV80 and GV70 were released and settled on the track of success. Genesis will be imprinted as Korea’s first premium brand in the history of Western automobiles.
The sense of responsibility that the Hyundai Motor Group should have is also expected to be significant. However, some still evaluate that Genesis cannot beat the imported car brand. “It’s still a long way to become a true premium brand.” Why?
Building brand value
It is one of the important tasks
Some say, “It’s because the brand value is still lacking.” That is also because Genesis has a short history of only 5 years since its inception. It is inevitably insufficient to keep up with the basics and brand values of Mercedes, which boasts 100 years of history.
On the other hand, another netizen is an atmosphere to support Genesis, saying, “The brand value is not formed in just a few years.” The greater the consumer’s expectation, the heavier Genesis’ shoulders, but I hope to pioneer Genesis’ own path by slowly strengthening the basics and accumulating know-how. It was Auto Post Issue Plus.
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