Genesis undeterred by Infiniti’s Australian exit

Hyundai’s fledgling luxury car arm, Genesis, says it is undeterred by Infiniti’s sudden exit from the Australian new car market amid tough trading conditions and intense market competition.

Following a similar exit from western Europe earlier this year, Infiniti yesterday announced it would exit the Australian market by the end of next year, spelling the end of the small Q30 and QX30, mid-size Q50 sedan and Q60 coupe, and the QX70 and QX80 SUVs currently sold via five dealers.

Infiniti’s withdrawal comes as the Australian new-vehicle market bombed by 12.5 per cent in August, industry figures are expected to show on Wednesday, and fierce competition from Mercedes-Benz, BMW and Audi, which together account for two-thirds of the prestige segment.

Infiniti Australia has sold about 4275 vehicles since its inception in 2012. Its annual peak was 807 in 2016, when it accounted for 0.6 per cent of the luxury market, but sales have declined since then and its two small cars will soon be axed.

Meantime, Toyota’s luxury brand Lexus was launched in Australia almost 20 years ago and holds about eight per cent of the premium vehicle market.

Infiniti says its is committed fulfilling its obligations to customers in Australia, where it willl confirm servicing, warranty and maintenance provisions in the coming months.

Contrasting with Infiniti’s exit from Australia is Genesis, the Hyundai luxury offshoot that formally made a splash onto the luxury market in June with the mid-size G70 and large G80 sedans.

Speaking with carsales.com.au, a Genesis Australia spokesperson said Infiniti’s departure would have no bearing on the Korean luxury marque’s plans Down Under.

The spokesperson pointed out that Genesis is in a different position to Infiniti, offering an alternative sales model, broadened aftersales care and an influx of new product.

“We’re starting with one showroom and then expanding with demand,” the spokesperson said. “We have a different retail strategy and a strong product portfolio coming.”

Genesis’ position is unsurprising. The Korean’s global boss, Manfred Fitzgerald, is bullish about his brand’s prospects in Australia and abroad – an attitude that has brought about bold market initiatives including non-negotiable pricing.

Despite big intentions for Australia, Genesis is playing its cards carefully by opening with a lone studio in Sydney's Pitt Street mall, after its local arrival was hit from several delays as officials sought to ready the business.

Without quoting sales figures, the Genesis Australia spokesperson expressed encouragement at its opening few months in Australia.

“We’re getting a lot of interest at the studio, we have our first SUV revealed globally this year [the GV80] in before reaching Australia in 2020, with another SUV to follow shortly after,” the spokesperson said.