Bring on Hyundai Genesis, says Benz

Hyundai's new Genesis will create a few waves when it arrives in Australia priced from under $60,000 later this year, undercutting large luxury sedan rivals from both German and Japan.

Despite the new premium sedan targeting the established Europeans, Mercedes-Benz Australia (MBAu) says it is not concerned about customers jumping ship to the new rear-drive Korean four-door.

Nevertheless, the German importer will be keeping a close eye on how customers react to the Genesis sedan, which will be powered by a 232kW 3.8-litre V6.

"We'll watch with interest what it does in the market. But we're not worried about it arriving," stated MBAu's PR chief, David McCarthy.

"The guys buying an E-Class, are they going to be looking at a Genesis? Probably not. But it's an interesting move," he said.

Although Mercedes says it's not concerned about the arrival of a new large luxury car in the Australian market, it says Lexus and Infiniti shouldn’t be quite as blasé.

"Lexus is really a different customer to Benz, Audi or BMW customers, and that’s not to downgrade their brand, that's the reality. Lexus will feel it, and Infiniti too," said McCarthy of the Genesis' impending arrival.

Mercedes-Benz sold more than 27,000 vehicles in Australia in 2013, making it the most popular prestige brand in this country.

However, Hyundai has made great strides in Australia and globally, from humble beginnings as a budget-car brand in the 1990s, when the Hyundai Excel was its star attraction, to a company that can challenge in the prestige car market.

Hyundai's product quality, variety and design have improved greatly over the years, to the point where Hyundai is now the fourth most popular brand in Australia, behind Toyota, Holden and Mazda.

There's also likely to be some cross-shopping with top-spec Ford Falcons and Holden Commodores -- Calais V and G6E -- with buyers likely to take a close look at the new flagship Hyundai for several reasons, including a strong warranty.

We recently tested the Genesis and scored it 82/100, with a quiet and composed ride and interior quality among some of its standout features.

Whether the Genesis becomes a sales hit for Hyundai remains to be seen, but it's clear everyone will be paying attention to the ambitious Korean brand's most expensive model ever when it lobs here later in the year.