AutoBeta(AutoBeta.net)07/24 Report--

According to the number of new car compulsory insurance purchases, in the first half of 2022, Genisis sold 370 cars in China, 115 Genisys GV80, 48 G70 and 207 G80. Among them, in the first quarter, Genisis sold 298 vehicles in China, 86 Genisys GV80, 42 G70 and 170 G80. In other words, Genisis sold only 72 cars in China in the second quarter.

GENESIS is an independent luxury brand of Hyundai Motor Group in Korea, similar to Toyota-Lexus, Honda-Acura, Nissan-Infiniti, Ford-Lincoln, but domestic consumers do not have much impression of the Genisseth brand, and even many consumers do not know that Genisse is a luxury brand. In April 2021, Genisse broke the Guinness World record by using 3281 drones to spell out the "Hello, China" slogan on the Bund of Shanghai and once again announced that it would return to the Chinese market as an import.

Why "again"? Because this is not the first time that Genisse has entered the Chinese market. Prior to this, Genisse entered the Chinese market in the name of "Lawns" and "Gaines" in 2008 and 2014 respectively, but without exception, they all disappeared after entering the Chinese market a few years later.

On July 26th, 2021, the Genisys G80 and the Genisse GV80 are on the market. The former is located as a medium and large car with an official guidance price of 36.28-433800 yuan, while the latter is positioned as a medium and large SUV with an official guidance price of 52.98-618800 yuan. The Genisse G70 will be launched on October 19, 2021, with a new car located as a medium-sized car, with an official guidance price of 24.98-355000 yuan.

If you compare luxury cars of the same class, in fact, Genisse models have the texture that luxury brands should have in terms of appearance, interior, workmanship and materials, but from the point of view of consumers, the pricing of Genisse is too confident. The G80 of RMB 36.28-453800 is on the same level as BMW 5-Series, Mercedes-Benz E-Class, Audi A6L and other models. The 52.98-618800 yuan Genisse GV80 competes head-on with Lexus RX, Volvo XC90 and other models, but considering that other luxury models still have certain discounts in the market, and Genisse uses a direct marketing approach, in fact, Genisse's products should be classified into the same level of products. Of course, this is not the most important thing. Genisse is far less well-known than Mercedes-Benz, BMW, Lexus and so on. In other words, if the popularity is not good and the price is more expensive, how can consumers pay for it?

Facts have proved that very few Chinese consumers have paid for it. The G70, G80 and GV80 models sold a total of 370 vehicles in the first half of the year, of which the G80 was 207, the GV80 was 115and the G70 was 48. Although Genisis entered the Chinese market by way of import, its sales figures really can't bear to look directly at. For comparison, there were 686 imported cars in Infiniti, 498 imported Jaguar, 1039 imported Lincoln, 9822 imported Volvo, 17079 imported Land Rover, 22880 imported Audi, 55151 imported BMW, 73625 imported Mercedes-Benz and 87814 Lexus in the first half of the year. It can be said that Genisseth, as an imported brand, ranks at the bottom of luxury brands.

With monthly sales of less than 100 vehicles in the Chinese market, Genisse began to seek change. On May 16th, Tian Sheng was appointed Vice President of Genisys Automotive sales (Shanghai) Co., Ltd., responsible for the sales, network and service operations of Genisys in China, and reported directly to Gernisse China CEO Horace. It is understood that he Ruisi took office in December 2019, has held positions in Mercedes-Benz and its high-performance brand Mercedes-AMG, how to pry the Chinese market for Genisse has become a top priority, but two and a half years later, he Ruisi does not seem to have made brilliant achievements.

Horace once said, "We should now focus on being able to do a good job in brand positioning and brand building," but the reality is that Genisse's brand building has been slow to make progress, and its positioning is not clear. This also restricts Genisse's sales to a certain extent. According to the official website, Genisis currently only has brand centers in Beijing, Shanghai, Chengdu, Nanjing, Hangzhou, Guangzhou, Suzhou and other cities, with a total of 12 stores directly operated by brands, of which two stores in Beijing have not yet opened.

The environment of China's auto market has changed. The sense of existence of the Chinese market in this Korean luxury brand is far less than that of its own high-end brands. Where should Genisse return to China for the third time?

In fact, not only Genisse, but also Hyundai Motor Group is not "happy" in the Chinese market. According to the insurance figures, the sales of Hyundai in Beijing in the first half of 2022 was 109768, down 45.99% from the same period last year. Dongfeng Yueda Kia's cumulative sales were 50155, down 38.89% from the same period last year. Hyundai import (including Genisse) sales fell 11.17% to 652 vehicles. Due to the continued decline in sales of Korean brands, the market share in China is less than 2%. According to data released by the China Association of Automobile Manufacturers, the market share of Korean cars in China from 2016 to 2021 was 7.35%, 4.63%, 4.98%, 4.7%, 3.8% and 2.4%, respectively, while the market share of Korean brands was only 1.7% in the first half of the year.

According to the current trend, the result of Genisse's second entry into China is obviously not ideal. Hyundai and Kia, the mainstream Korean brands, are very difficult to survive in the Chinese market, and it is even more difficult to locate the luxurious Genisse. Whether it is brand premium or product premium, it is difficult to be recognized by Chinese consumers.

Hyundai, Kia and Genisse are still very hot in overseas markets. In the US market, for example, US car sales fell 18.2 per cent to 6.841 million vehicles in the first half of 2022 from a year earlier, with GM (- 17.8 per cent) overtaking Toyota (- 19.1 per cent), Ford (- 8.1 per cent) and Stellantis (- 14.7 per cent), while Hyundai Kia (- 12.7 per cent) overtook troubled Honda (- 39.3 per cent) to fifth place.

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