On the 2nd (local time) on the 2nd (local time), Hyundai Motor Company officially launched the brand by opening’Genesis Brand Night’ at the International Cruise Terminal in Shanghai, China. Genesis President Jae-hoon Jang, who attended the event, said, “Today is the day when Genesis’ bold journey begins anew,” and expressed the significance of launching the Chinese market. Genesis is going to target the Chinese market with a large luxury sedan G80 and a large sports utility vehicle (SUV) GV80 on the front.
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China, where the luxury car market is growing. Hyundai Motors holds the key to rebound through the launch of Genesis
According to Hyundai Motor Group on the 4th, Kia sold a total of 92,117 units in China from January to February this year. By month, in January, it sold 53,931 units, an increase of 3% compared to the same period last year, and in February, it sold 38186 units, an increase of 298.6%. In particular, there is an explanation that last February was due to the base effect of the aftermath of the spread of Corona 19, but compared to the steady downward trend since 2017, the signal for a rebound in Chinese sales has been on.
Earlier, Hyundai Motor Company was unable to escape from continued sluggish sales due to the THAAD incident in 2017. By year, △ 1.79 million units in 2016 △ 1.15 million units in 2017 △ 1.16 million units in 2018 △ 91 million units in 2019 △ 660,000 units in 2020. But last year, the new Avante (local name Elantra) and even ix35 units, etc., continued to improve sales of volume vehicles, and the atmosphere changed.
Accordingly, Hyundai Motor Company is making all efforts to make it the year of a rebound in the Chinese market this year. In fact, according to the Hyundai Motor Group Global Management Research Center, this year, the Chinese automobile market is expected to record the only global growth trend. According to the research institute, China’s automobile demand this year is expected to increase by 10% compared to the same period last year to 21.4 million units. In particular, the Chinese market is predicted to maximize the effect of the Genesis launch as the luxury car market is growing at around 10% every year.
An official from Hyundai Motors said, “The sales volume in China has decreased since THAAD, but it is on an uptrend due to the reorganization of dealer networks of Hyundai and Kia.” “Through the launch of Genesis, we believe that sales in the sluggish Chinese market will recover. I do” he said.
Hyundai Motor Company plans to focus on providing differentiated services for the successful establishment of the Genesis brand in the Chinese market. First, Genesis will open’Genesis Studio Shanghai’ in Shanghai during this month, where you can simultaneously sell and experience brands. Customers receive a one-on-one response here and plan to add the image of a high-end brand in a way that allows them to experience the purchasing process differentiated from existing Hyundai Motors and Kia.
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Hyundai Motor Company launched Genesis just before the Korea-China talks.
As the Hyundai Motor Group’s sluggish sales in China stemmed from the conflict between Korea and China that emerged after the THAAD incident, analysis suggests that the rebound in sales through the launch of Genesis will be attributable to the warm wind of Korea-China relations. The Hyundai Motor Group is also making a strategic move to settle in the Chinese market. In fact, the Genesis brand launch event took place the day before the Korea-China foreign ministers’ meeting held on the 3rd. This seems to be a strategy to enjoy the halo effect of the warm wind of Korea-China relations.
In fact, it is known that foreign minister Eui-yong Eui-yong and Wang Yi, a member of the state council in charge of foreign affairs in China, and foreign affairs minister, exchanged talks about the “releasing of the Korean regime,” which is holding back the domestic industry after the THAAD incident. It is also reported that the two showed their intimacy at the meeting, reaching out and shaking hands.
In addition to the Genesis launch event, Hyundai Motor Group is also making various efforts to improve relations with China. Hyundai Motor Company has selected CATL in China as a battery supplier for the third E-GMP electric vehicle platform. CATL was selected consecutively after the second E-GMP supplier, and continued to accompany Hyundai Motors for a while. The industry sees that Hyundai Motor Company has selected CATL as its supplier as a strategic choice. This is because the Chinese government is implementing a subsidy support policy only for electric vehicles equipped with domestic companies’ batteries to protect their own battery companies.
An industry insider said, “Since China is regarded as one of the most purchasing power in the global automobile market, it is a country that cannot be missed by the Hyundai Motor Group.” It seems that you are putting in as much effort as you hit it.”