Lexus welcomes Genesis

When Korean car-making giant Hyundai this month announced it will launch a stand-alone luxury brand, Genesis, to take on the likes of Mercedes-Benz, BMW, Audi and indeed Lexus — ending years of denials despite a senior Australian executive revealing back in 2011 that the company would do just that – its competitors had every right to stand up and take notice.

Hyundai has promised to deliver six Genesis models by 2020 (although how many of them will be right-hand drive remains to be seen) and although BMW and Mercedes are probably not quaking in their boots just yet, Lexus is taking this new threat very seriously.

Sean Hanley, Lexus Australia's chief executive, wouldn't be drawn on whether he sees Genesis as a direct rival, but told motoring.com.au "I respect all car companies, to be truthful".

"I've often said the great thing about the Australian motor industry is that we have a very solid, quality industry. So any competitors that come here you have to respect. They're all good cars," he opined.

Hanley said Lexus will sell around 8500 cars Down Under in 2015 and to the end of October its sales are up by more than 28 per cent, but he noted that sales success in the luxury car segment is not an overnight occurrence, no matter how good your product is.

Fellow Japanese luxury car brand Infiniti – Nissan's primo badge – has struggled to gain a foothold in Australia over the past few years, the major bottleneck for that company being a lack of dealerships and products.

Unlike Infiniti, Jaguar and the big three Germans, Genesis will set-up inside existing Hyundai showrooms rather than establish expensive new dedicated sales and service facilities.

"What I've learnt is that to gain the trust of the luxury buyer, you must dedicate resources and you must dedicate absolutely, culturally, to a rock-solid customer experience," said Hanley, implying that Genesis would need costly standalone infrastructure to be true a contender in the luxury space.

"For Lexus to go where it was 25 years ago to an established brand now, selling 8500 cars, we've had to demonstrate an outstanding customer experience," he said.

Quizzed over whether Genesis would face an equally long, tough slog to sales success and market recognition, Hanley was magnanimous.

"Well, I don't have any comment to make on Genesis. I wish them all the best," he said.

"For Lexus and for me, it's about what we can do to grow the Lexus brand. On that journey of course we always respect the new entrants, whether they be Korean, German or Japanese."