Hyundai delays Australian Genesis launch – again

After missing its launch targets in late 2017 and then early 2018, fledgling luxury car brand Genesis has delayed its Australian market launch to later this year.

Genesis is Hyundai's new luxury brand, much as Lexus is to Toyota an Infiniti is to Nissan.

The company views itself as a disruptor in a segment dominated by Mercedes-Benz and BMW, but is struggling to nail down a local launch date.

"The current timing is fourth quarter in 2018 for the Genesis launch in Australia," spokesman Guido Schenken told motoring.com.au.

When asked the reason for the delay, he declined to comment.

In January 2018, Hyundai's Australian chief operating officer Scott Grant said an April or May introduction was expected.

"We're hopeful in the next month or so we might get a final agreement and move forward with launching the G80 and G70," said Grant, but that clearly hasn't happened.

Currently there are three Genesis sedans available in markets such as the USA – G70, G80, G90 – and several more coming, including two Genesis SUVs and a Genesis GT coupe based on the Essentia concept.

Hyundai has invested significant capital to not only poach the best auto execs and car designers from around the world to lead up its luxury car division, but also to establish the infrastructure to sell its vehicles globally.

The South Korean car-maker is yet to confirm how it will sell Genesis vehicles in Australia, although it’s likely to be a ‘shop-in-shop’ arrangement under which Genesis showrooms are established alongside existing Hyundai dealerships – rather than stand-alone dealerships like Lexus and Infiniti.

However, as we’ve previously reported, there is also momentum to sell the vehicles via virtual showrooms online, which could be straining negotiations between dealers and Hyundai head office.

Other reasons for Genesis’ local delay may be the flagging luxury car market in Australia and the reluctance of dealers to invest in the significant infrastructure required to establish a new prestige vehicle brand.

Both BMW and Audi saw negative growth in 2017 for the first time in years, while Mercedes recorded only incremental growth.

Sales of large luxury sedans in Australia slumped by more than one third (35.5 per cent) in the first four months 2018, with the BMW 5 Series down 52 per cent and the Mercedes-Benz E-Class down almost 32 per cent. The E-Class and 5 Series are the two top-sellers in the class and the Genesis G80 will slot into the same segment.

For now, Genesis is also without an SUV offering, which is a serious concern for the newcomer in a market that relies heavily on SUV sales to prop up sales results.

Hyundai Australia stated earlier this year that an SUV will likely be the third model its launches here after the G70 and G80, but is yet to provide timing.

The bigger Genesis G90, a BMW 7 Series rival, could be the fourth model, followed by another SUV then the GT Coupe. The upstart luxury brand is also understood to be working on hybrid and EV models.