Enhancing Brand Image

Hyundai Motor is planning to launch its luxury Genesis brand in China within two to three years to beef up its brand image there.
Hyundai Motor is planning to launch its luxury Genesis brand in China within two to three years to beef up its brand image there.

 

As the Sino-Korean THAAD disagreements begin to simmer down, Hyundai Motor is making every effort to bounce back from a sales hit in the Chinese market by releasing its premium Genesis brand in China and expanding its electric vehicle (EV) and strategic local model lines. The company plans to focus on beefing up its brand image and improving its quality, rather than short term promotional and marketing campaigns, in order to secure a foothold for the medium and long term growth.

According to industry sources on May 31, Hyundai Motor is planning to launch its luxury Genesis brand in China within two to three years. The company will unveil the EQ900 and G80, which are now released in the domestic market, as well as the G70 to be released in the domestic market in the second half of this year. However, Hyundai Motor has not decided yet when and how it will launch the cars due to China’s high import tariff on foreign brand cars. At the moment, Hyundai is highly likely to use complete knock-down (CKD) kits shipped from South Korea to assemble Genesis cars in China. Building Genesis cars from kits in China would not only lower tariffs but also prevent technology leaking to its local joint venture partner.

In addition, Hyundai Motor will release local strategic models. In particular, the company plans to expand its sport utility vehicle (SUV) lines, including the ix35 and NU, as the sales of SUV are on a sharp rise in the Chinese car market. It will also roll out the Chinese model of the Sonata New Rise. Hyundai is planning to unveil the first EV in China at the end of this year in a bid to strengthen its eco-friendly image. The EV to be based on the Yuedong, a localized version of the Elantra, will be equipped with Chinese batteries.

An official from Hyundai Motor said, “We are highly likely to launch the Genesis Brand in the Chinese market but we haven’t decided yet on when and how due to the tariff issue. We will recover our sales growth by releasing new competitive models, rather than responding to the Chinese market from the short term point of view. We will also gain the trust of Chinese consumers by releasing Chinese strategic models and EVs and improving the quality. With the THAAD issue, we are seeking to pursue radical reform of the Chinese business.”

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