Now an established luxury brand, Genesis is refining strategy to win loyal customers

Genesis' build-out of a sleek product lineup since its introduction to the U.S. in 2016 has helped drive steady growth for the premium brand, but leveling up against legacy rivals in a competitive luxury market will require refining the ownership experience.

This means enticing car shoppers away from established luxury players, keeping Genesis customers loyal and creating a luxury dealership network for the brand.

"Our biggest challenge right now is meeting new customers and introducing ourselves, but once you experience Genesis, it's a pretty cool thing," Ash Corson, Genesis' director of product planning, told Automotive News in August.

Corson said the brand approach to loyalty is two-pronged — delivering the right product at the right time, and developing what he calls a "supporting infrastructure" tailored to the customer's needs.

Introducing performance variants for dedicated electric models under its new Magma subbrand, a recent freshening across its core 80 series vehicles and the addition of hybrids to every model line is designed to grow the portfolio in multiple dimensions.

The infrastructure also includes home chargers to support Genesis' growing electric vehicle lineup, complimentary connected services such as an in-vehicle Wi-Fi hot spot, and digital platforms that enable easy engagement between customers and the brand.

"It's an important part of building loyalty and retaining customers as Genesis continues to grow its brand presence," Corson said.

Corson's team is planning which models Genesis will roll out so it will have what repeat buyers want "when they're ready to upgrade their mobility options."

Genesis' first electric performance variant under the Magma subbrand will be the GV60 Magma, likely to land in late 2025. A three-row electric crossover based on the Neolun concept, expected to be called the GV90, will round out the brand's current portfolio of people-haulers. The crossover is expected to arrive in mid-2026.

Genesis parent company Hyundai Motor Co. recently announced it will add two hybrid systems for the brand, with a hybrid offering in every model line — except for dedicated EVs. The expansion of electrified options will help bridge the transition to full-electric powertrains from internal combustion.

Genesis initially said it would stop selling new internal combustion engines by 2025 with the goal of becoming all-electric by 2030. But the pace of EV adoption has slowed, and pivoting to hybrids will help Genesis adapt to shifting consumer preferences.

The brand has not confirmed where hybrids fit into its long-term objective, but clearly Genesis' outlook on EVs has softened.

With only three lease cycles under its belt, the 9-year-old brand still relies heavily on conquest customers.

Mercedes-Benz, BMW and Audi — the German rivals with which the brand aims to compete — outsell Genesis by a long shot. In 2023, Mercedes and BMW both surpassed 350,000 vehicles in the U.S., and Audi logged sales of 228,550. Genesis sales fell just shy of 70,000 vehicles last year.

"The U.S. is not a growing market, so it's tough to say whether it's even possible for Genesis to reach the sales levels of the Germans," Stephanie Brinley, a principal automotive analyst at S&P Global Mobility, told Automotive News.

S&P Global Mobility estimates that U.S. auto sales will close 2024 roughly in line with the 15.6 million achieved last year but will remain below pre-pandemic levels. The industry sold 17.1 million vehicles in 2019.

Brinley said Genesis does not need to match Mercedes-Benz, BMW or Audi in volume to be just as good in product. "They have almost closed the gap in terms of driving dynamics," she said.

"The dealerships and the way they treat their customers is going to be the difference," Brinley added. "It's clear Genesis is focused on building a strong luxury brand and dealer network, rather than chasing high sales volumes."

Genesis' performance in the U.S. has thus far been driven by strong vehicles. Following the release of the midsize GV80 and compact GV70 crossovers, sales jumped more than 200 percent to 49,621 in 2021.

The brand's first dedicated EV, the GV60, arrived in the U.S. in 2022, helping boost sales 14 percent to 56,410. Deliveries of the Electrified GV70 — an electric crossover — and the G80 began last year, and sales rose 23 percent to 69,175.

Through August, Genesis sales increased 3.1 percent to 45,401. The freshening across its 80 series model line, including the addition of the GV80 coupe, which embodies "athletic elegance" in design and engineering, is helping drive sales. The automaker also is focused more on retail versus fleet customers.

Genesis declined to provide a forecast for 2024, but a spokesperson said more growth is expected.

Genesis' biggest opportunity is expanding and improving the dealer experience. That includes the number of dedicated dealerships as well as their geographic coverage.

"The dealers are a key touchstone for the customer, not just looking at vehicles or buying them, but also for repeat visits," Corson said. "The vehicles are getting so rich with features and options, particularly in these emerging digital spaces, having the initial touch point in a dedicated environment is really important."

In 2022, after six years of selling vehicles out of Hyundai dealerships, Genesis opened its first store in Lafayette, La. The brand opened its first dealership on the East Coast in 2023, a sprawling 20,000-square-foot flagship store in Marlton, N.J. Today, there are 56 upscale, glass-laden Genesis storefronts spanning 26 states.

The retail network has been whittled down to 227 as of Aug. 1 from 254 dealers late last year, according to the company. A spokesperson said a number of dealers voluntarily decided the brand might not be best for their market or business. Genesis expects the network to have more than 100 standalone dealerships when all is said and done, he added.

"Genesis has done a great job of separating itself from Hyundai, despite starting as a Hyundai model," Sam Fiorani, vice president of automotive data firm AutoForecast Solutions, told Automotive News.

Genesis' rear-wheel-drive models differentiate themselves from the vehicles in Hyundai's lineup, which are largely front-wheel drive, Fiorani said.

The premium brand also has undergone a corporate expansion to bring it more autonomy from mainstream Hyundai.

Corson, who stepped into the top product planning role for Genesis in late 2023 after more than a year at Hyundai Motor North America, is part of those changes. Before joining Genesis, he spent more than a decade at Toyota and Lexus.

"My position is representative of Genesis' dedication to the growth from where we are and where we want to go," Corson said.

Other changes include the appointment of former Mercedes-Benz executive Drew Slaven as CMO and Hyundai Motor veteran Troy Saito as sales operations director. These dedicated resources, along with standalone dealerships and a growing portfolio of products, will help Genesis write its own story.

Compared with the long legacies behind Mercedes-Benz and BMW, Genesis started at a deficit, Fiorani said.

"It needs to carve a path without generations of models in its past," he said.