The original Hyundai Genesis at the 2015 Miami International Auto Show
Audi, BMW, Porsche, Mercedes, and Lexus are all brands that come to mind when it comes to luxury vehicles. It’s also safe to assume most people don’t associate the Hyundai brand with luxury. In fact, its most expensive and luxurious car is the Hyundai Genesis, which starts at $43,600 dollars.
Luxury cars are experiencing a boom in popularity, with sales in Canada growing quickly. According to BMO economist Alex Koustas, sales have increased by 37 per cent since 2013. In fact, Audi sales are up more than 14 per cent in the first eight months of 2016 compared to the first eight months of 2015. It’s no wonder non-luxury brands like Hyundai are looking to take luxury branding out for a spin.
Hyundai is ready to enter the market with their new luxury car brand Genesis. Keep reading to discover what you need to know about this new spin-off brand.
The Genesis Brand and Vehicle Models for Students at Automotive Training Schools
The Genesis Motors Canada brand is a complete offshoot of Hyundai. In order to achieve high-end positioning in the vehicle marketplace, Genesis won’t associate with its parent brand. Hyundai has dabbled in luxury vehicles before with its attempt at selling the large sedan Equus. However, it learned its lesson quickly about entering a highly competitive and exclusive market.
As Genesis Brand Director, Michael Ricciuto, has stated, “Our learning experience from introducing the [Hyundai] Equus was that you can’t sell luxury products in a mainstream dealer.” He explains “Luxury customers are more interested in features, not payments. Brand is also important.”
The Genesis brand will rework Hyundai’s current Genesis car model and rename it the G80, which will cost purchasers $54,000. The new Genesis brand will also introduce another even higher-end model called the G90, which will cost luxury car buyers $84,000 to get their hands on. In total, Genesis is planning to offer six different models by 2021. If Genesis successfully enters the market, you might even get the chance to work on one of these cars after your automotive repair training.
Students in Automotive Repair Training, Genesis Has an All-Inclusive Pricing Structure
Another unique aspect of Genesis’ approach will be the all-inclusive pricing model it will adopt.
Ricciuto states that “We’re going to eliminate the old approach of trying to up sell customers with things like rust-proofing and VIN etching.” Students at automotive training schools might know that this standard approach has been around for years. However, Genesis plans to go against the grain by selling cars with almost everything included. Ricciuto explains that, “We’ll have an online menu of available options like extended warranties. But our cars come very well-equipped; for example, every Genesis will come with SiriusXM for five years, including free data and map updates.”
Students in Automotive Repair Training, the No Dealership Model is Gaining Momentum
Genesis is determined to do things a little differently. Following the lead of new luxury segment entrants like Tesla, Genesis will not start out with any traditional dealerships. For the first four months after the launch, Genesis will be relying on its “Genesis at Home” initiative. Genesis at Home caters to the time-constricted luxury car buyer. A GXM (Genesis eXperience Manager) will come to a client’s home or office to let them test drive a G90 or G80. Then, if the customer likes it, purchasing documents and processes can be completed online at their convenience.
But “online only” shopping won’t be the only way customers can make a purchase. Genesis will have some pop-up shops in major markets such as Montreal and Toronto to increase their brand exposure. After four months, Genesis will begin developing dealerships. It plans to have 30 stores in Canada by 2021.
One thing is clear: Genesis is looking to simplify and streamline the luxury vehicle shopping experience. Will it be enough for them to break into the luxury market? Only time will tell.
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