Hyundai to boost ‘premium’ image
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| An artist’s rendering of the new Genesis |
Based on article from Korea Times Nov 4, 2013
Hyundai Motor is seeking to create a more exclusive image for its brand, shifting up a gear in the market from its value-for-money image, with the next generation Genesis sedan.
The automaker recently unveiled some details of the second generation Genesis as well artist renderings of it before its official launch before the end of the year. It also announced that it will launch the new model in the European market next year.
It seems that this is a very ambitious move for Hyundai because it is willing to take on German rivals with the launch of the full-size luxury car for the first time.
Chairman Chung Mong-koo also said that the Genesis will change people’s overall perception of Hyundai’s vehicles in the European market.
“The new Genesis is our pride. It shows the level of our technological advancement,” Chung said. “I believe it will compete well against the best-selling large sedans in Europe in terms of quality and performance. European consumers will like it, too.”
Market insiders believe that it is an inevitable choice for the automaker to leap forward as a global automaker.
“An auto giant such as Hyundai needs a premium image,” Park Young-ho, a senior analyst at KDB Daewoo Securities, said. “Hyundai has drastically improved product quality, but what it lacks is brand awareness, compared to German brands.”
But the most interesting aspect about the strategy to create a premium image is that Hyundai is without a separate luxury brand such as Toyota’s Lexus and Nissan’s Infiniti.
Instead, it has focused its new brand identity of “modern premium” because it puts the Hyundai logo on luxury sedans. The underlying concept of the phrase is that drivers can enjoy owning a premium car at an affordable price.
In fact, the Genesis is priced at between $34,000 and $47,000 in the U.S, but its competitor BMW 5 Series is priced at between $49,500 and $66,200.
But the new Genesis, based on unveiled details about it, boasts high-end features, which especially focus on enhancing driving performances.
The new Genesis will get rear-wheel drive as standard just as before but it has an optional “Hyundai Traction” (HTRAC) all-wheel drive system. Replacing the electro-hydraulic power steering system in the current model, the new Genesis will get a full-electric, rack-mounted power steering system.
One of the most innovative features is a CO2 sensor to prevent drowsy driving. The sensor detects human CO2 emissions in the cabin and will automatically open outside vents when the levels reach a threshold that would induce drowsiness.
In terms of design, it will have a higher-end appearance with the “Fluidic Sculpture 2.0”, a term used to describe the bodywork of the Genesis.
Major styling changes include a taller, upright, single-frame grille, larger headlights, sharper body lines and a swept-back, couple-like roofline.
For such an innovative makeover, the company spent about 500 billion won over the past four years. This is a huge amount of investment given the portion of Genesis sales in Hyundai’s total trade. It has sold about 250,000 Genesis worldwide since the first model was launched.
So, this bold investment shows the automaker’s ambition to develop a world-class premium rear-wheel drive sedan, boast its advanced technology and enhance its brand awareness, regardless of sales figures.
In fact, Hyundai’s sister automaker Kia Motors has made similar efforts with the launch of the K9 luxury sedan last year, although it was not so successful because its sales much lower than expected.
But Hyundai will be different from Kia.
The Genesis has been successful in the U.S., and the Hyundai’s brand has been well received.
The brand value of Hyundai jumped to 43rd at $9.04 billion this year from 53rd last year in an annual survey conducted by Interbrand, a global brand consultancy, on improved product quality and broader awareness campaign.
“Hyundai needs to further upgrade its brand awareness through the launch of luxury cars,” Chae Young-seok, chief editor of the Global Auto News, said. “Branding is crucial in the auto industry but it takes time. So the challenge is how consistently Hyundai can make efforts to improve its brand awareness until customers can get it.”
Hyundai Motor is seeking to create a more exclusive image for its brand, shifting up a gear in the market from its value-for-money image, with the next generation Genesis sedan.
The automaker recently unveiled some details of the second generation Genesis as well artist renderings of it before its official launch before the end of the year. It also announced that it will launch the new model in the European market next year.
It seems that this is a very ambitious move for Hyundai because it is willing to take on German rivals with the launch of the full-size luxury car for the first time.
Chairman Chung Mong-koo also said that the Genesis will change people’s overall perception of Hyundai’s vehicles in the European market.
“The new Genesis is our pride. It shows the level of our technological advancement,” Chung said. “I believe it will compete well against the best-selling large sedans in Europe in terms of quality and performance. European consumers will like it, too.”
Market insiders believe that it is an inevitable choice for the automaker to leap forward as a global automaker.
“An auto giant such as Hyundai needs a premium image,” Park Young-ho, a senior analyst at KDB Daewoo Securities, said. “Hyundai has drastically improved product quality, but what it lacks is brand awareness, compared to German brands.”
But the most interesting aspect about the strategy to create a premium image is that Hyundai is without a separate luxury brand such as Toyota’s Lexus and Nissan’s Infiniti.
Instead, it has focused its new brand identity of “modern premium” because it puts the Hyundai logo on luxury sedans. The underlying concept of the phrase is that drivers can enjoy owning a premium car at an affordable price.
In fact, the Genesis is priced at between $34,000 and $47,000 in the U.S, but its competitor BMW 5 Series is priced at between $49,500 and $66,200.
But the new Genesis, based on unveiled details about it, boasts high-end features, which especially focus on enhancing driving performances.
The new Genesis will get rear-wheel drive as standard just as before but it has an optional “Hyundai Traction” (HTRAC) all-wheel drive system. Replacing the electro-hydraulic power steering system in the current model, the new Genesis will get a full-electric, rack-mounted power steering system.
One of the most innovative features is a CO2 sensor to prevent drowsy driving. The sensor detects human CO2 emissions in the cabin and will automatically open outside vents when the levels reach a threshold that would induce drowsiness.
In terms of design, it will have a higher-end appearance with the “Fluidic Sculpture 2.0”, a term used to describe the bodywork of the Genesis.
Major styling changes include a taller, upright, single-frame grille, larger headlights, sharper body lines and a swept-back, couple-like roofline.
For such an innovative makeover, the company spent about 500 billion won over the past four years. This is a huge amount of investment given the portion of Genesis sales in Hyundai’s total trade. It has sold about 250,000 Genesis worldwide since the first model was launched.
So, this bold investment shows the automaker’s ambition to develop a world-class premium rear-wheel drive sedan, boast its advanced technology and enhance its brand awareness, regardless of sales figures.
In fact, Hyundai’s sister automaker Kia Motors has made similar efforts with the launch of the K9 luxury sedan last year, although it was not so successful because its sales much lower than expected.
But Hyundai will be different from Kia.
The Genesis has been successful in the U.S., and the Hyundai’s brand has been well received.
The brand value of Hyundai jumped to 43rd at $9.04 billion this year from 53rd last year in an annual survey conducted by Interbrand, a global brand consultancy, on improved product quality and broader awareness campaign.
“Hyundai needs to further upgrade its brand awareness through the launch of luxury cars,” Chae Young-seok, chief editor of the Global Auto News, said. “Branding is crucial in the auto industry but it takes time. So the challenge is how consistently Hyundai can make efforts to improve its brand awareness until customers can get it.”
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