Hyundai Motor Company is making all efforts to penetrate the fast-growing SUV market. On Wednesday, the South Korean automaker unveiled its first SUV under its Genesis brand. Understandably, the move is in a bid to make it presence felt in the overseas market, particularly North America and Europe.
An increasing number of Americans are shunning passenger cars and going for sports-utility vehicles and pickups. This has seen Hyundai's appeal declining in the United States over the past few years. The launch of new SUV is certainly an effort to toward bouncing back and recapturing the US car market.
Hyundai tries to penetrate overseas market
The GV80 SUV is part of its Genesis brand, which was spun off in 2015 in a bid to revamp the automaker's image of value-for-money car. Genesis is a sedan-only line up but hasn't been much successful in the United States. GV80 will be the first SUV in the brand's line-up which the company plans to launch in the first quarter of 2020.
William Lee, Global Head of Genesis, told at a press conference on Wednesday that the SUV will strengthen its line-up and following US, the company plans to launch the vehicle in China and Europe. Genesis is yet to make its presence felt in the China and European car market. Understandably, Hyundai through its Genesis brand now is planning to explore the SUV market, which is fast growing in the United States, the largest car market in the world.
Hyundai takes the SUV route to success
The appeal of sedans has be declining in the United States over the past few years, with an increasing number of Americans going for SUVs, pickups and crossovers. This has many US carmakers increasingly shifting focus to toward SUVs and doing away with passenger cars. Genesis has a negligible presence in the United States, with only three sedans to its line up.
Moreover, Hyundai has been suffering in the United States and has been embroiled in several dealership issues. In 2019, Genesis tried to rebuild its retail network in the United States after faltering on strategy for separate dealerships to Hyundai-branded vehicles. This resulted in a dispute with Hyundai dealers. Needless to say, Hyundai with the new SUV will aim at not only exploring the SUV market but also will try to rebuild Genesis' image in the United States.