Hyundai Motor Co. will launch luxury Genesis brand in China next year in hopes to recover presence in the world’s largest auto market through premium appeal.

The Genesis brand will be showcased at the upcoming China International Import Expo (CIIE) in November for an official launch next year, Hyundai Motor said in a conference call after releasing third-quarter earnings results on Monday.

The decision was made after Hyundai Motor put off the planned release of new Sonata and Elantra sedans in the first half until the second half due to Covid-19 outbreaks. Its sales in China also plunged 32 percent on year to 300,000 units in the July-September period as it fast lost grounds to cheaper Chinese brands.

Overall auto demand in China has been waning since 2017, whereas demand for large-sized cars and luxury vehicles has been on the rise. Hyundai Motor pins high hope on its luxury Genesis brand and more new cars such as EV models.

Strategic models for China include new Mistra and new Tucson coming out in the first half and multipurpose vehicle KU and Ioniq brand’s first EV model NE in the second half.

“New Elantra and ix35 upgrade will also be released to compete with same-segment vehicle models of Chinese brands,” said Lee Kyung-tae, vice president and managing director of China Team at Hyundai Motor.

The company also aims to overhaul its dealership system in China for higher profitability. With a better professional coaching program, the current 700-strong dealership will be adjusted with focus on high-performing dealers. Burden from stockpiles will be minimized, and the prices will be maintained at reasonable levels, the company said.

In the longer term, Hyundai Motor aims to increase sales to bring back the lost glory in the Chinese market. The company plans to add more China-exclusive EV models under Ioniq EV brand and outside partnership for related services like charging, finance and maintenance. New releases will also be prepared in the mid-sized segment and the SUV lineup.

In India showing a clear sign of recovery, Hyundai Motor will focus more on compact passenger cars and SUVs. Its third-quarter auto sales jumped 14 percent on year to command the second largest share in the Indian market thanks to brisk sales of newest Creta and Venue SUVs.

Since the launch in March, cumulative sales of Creta reached 53,000 units, the largest in the same vehicle size category.

“Outlook for the upcoming final quarter, the traditional peak season for India, is upbeat but market uncertainties still are lingering due to the virus pandemic,” the automaker said, adding that the company will focus more on compact passenger vehicle market with release of new i20 and SUVs with latest Creta.

Hyundai Motor shares finished Tuesday 0.58 percent up at 172,500 won ($153.13) in Seoul.

By Pulse

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