In 2015, automobile manufacturer Hyundai announced their Genesis (luxury) line-up and that it would eventually become a separate brand. Genesis formally launched a year later with two models and debuted a crossover in 2020.
Also in 2020, it was announced that Genesis would require a separate standalone showroom facility (Genesis development guidelines are provided under the “Keystone” program versus; re-imaging of an existing Hynudai dealership, which is known as the “Accelerate” program) if existing Hyundai franchisees wished to continue selling the Genesis line-up. Initial reactions by Hyundai dealers were skeptical toward the idea, with many citing real estate costs as prohibitive for standalone facilities.
“It’s hard for dealers to justify the investment when they are only selling about 100 cars per year,” said Sam Abuelsamid, principal research analyst at Guidehouse Insights.
But conditions have evolved rapidly, as Abuelsamid went on to share that it makes much more sense to have standalone stores now that Genesis has the GV70 and GV80, and especially with the upcoming GV60 dedicated electric crossover. Following the GV60, Genesis will debut electric versions of its G80 and GV70. In other words, with the expanded line-up Genesis has been—and is expected to continue to—generate more robust sales volumes going forward. As indicated below, current average sales per Genesis dealer have risen steadily and stood at just over 200 cars annually as of year-end 2022.
Genesis sold 49,621 vehicles in the U.S. during 2021: triple its 2020 results. Most recently, Genesis closed 2022 with 56,410 sales, representing a 14 percent increase over 2021 and the first time the brand has achieved more than 50,000 sales. In the fourth quarter of 2022, Genesis rose 1.5 percent, with 15,530 sales. December marked a best-ever month for the brand, with 6,172 sales and a 23 percent increase over the year-ago month. The popular GV70 crossover posted 2,477 sales, also achieving a best-ever month.
In 2023 it was announced that Genesis has agreed to consider granting some flexibility on its expensive Keystone facilities plan to dealers who remain hesitant to construct exclusive storefronts for the young luxury brand. Of Genesis’ 270-dealership network, only two standalone stores opened in 2022 — one in Lafayette, La., and the other in Greer, S.C. There are 75 more in some phase of development.