Genesis, the luxury brand of Hyundai Motor (005380.KS), has declared its expansion into four additional European countries alongside its debut in the Hypercar class of the "Le Mans 24 Hours," the world's most prestigious endurance race. Through new entries into Poland, Portugal, Denmark, and Austria, the brand aims to widen its reach into Eastern, Southern, and Northern Europe, going beyond Europe's five largest auto markets of Germany, the U.K., France, Italy, and Spain.
Genesis announced Thursday in Le Mans, France, where the Le Mans 24 Hours is held, that it will expand into four additional countries—Poland, Portugal, Denmark, and Austria—by 2027. With this, Genesis will complete a sales network spanning 11 European countries next year.
Genesis first set foot in Europe in 2021. At that time, it entered not only Germany, the home of the automobile, but also Switzerland and the U.K. Last year, it expanded its territory to France, Italy, and the Netherlands, and it will enter Spain during the fourth quarter of this year.
The four newly targeted countries form a market of 1.29 million units annually. Of this, electric vehicles account for about 280,000 units and the luxury car market for about 300,000 units. In particular, Poland holds a market of 600,000 units annually, making it the sixth-largest market across all of Europe, following Germany (2.8 million units), the U.K. (2 million units), France (1.6 million units), Italy (1.5 million units), and Spain (1.1 million units).
Genesis plans to target the new markets with a differentiated electrification strategy. This is because all four new countries are showing outstanding electric vehicle growth rates. As of last year, the electric vehicle market growth rate in the four countries was 47.2 percent, far exceeding the overall European electric vehicle market growth rate of 29.7 percent. The company plans to put forward not only its electric model, the GV60, but also electrified versions of the GV70 and G80.
Along with entering the new markets, Genesis will switch its sales method in the European market to a dealer system. Since first entering Europe in 2021, Genesis had adopted a method in which the manufacturer sells vehicles directly to customers, in order to establish a "premium image" early on. Recently, however, it concluded that a dealer sales method backed by a strong local network would be more effective for full-fledged brand expansion. Accordingly, it opened its first European dealership in Amsterdam, the Netherlands, in April this year, and also began operating a dealership in Padua, Italy. In the second half of this year, it will add dealer networks in Lille, France, and Rome, Italy.
The strategic shift toward aggressive sales stems from its judgment that it has built up sufficient brand recognition and trust in the European market. In April this year, Genesis ranked first overall in "Best Brand in Every Class," the annual reader survey conducted by German automotive magazine Auto Bild. It was an achievement made by beating out Germany's homegrown brands such as Mercedes-Benz, BMW, and Audi.
Its participation in the Le Mans 24 Hours Hypercar class is also analyzed as a strategic decision in terms of expanding touchpoints with European motorsport fans. The aim is to actively use motorsport not merely as a sports marketing tool but as a link to European customers, solidifying its position as a luxury lifestyle brand.
Lee Si-hyuk, Executive Vice President and Head of the Genesis Business Division, said, "Genesis's expansion in Europe is not simply external growth but a process of redefining what a modern luxury brand is." He added, "We will continuously expand touchpoints with European customers by leading with electrification and brand experience."
