Hyundai is banking on the Genesis large sedan, which will go on sale by the end of this year in South Korea, to copy the resounding success of Toyota Motor Corp.'s Lexus brand. The Genesis will be available in the United States and China next year.
“So far, we haven't planned to sell the BH model in Europe,” the official said, referring the code-name of Genesis.
“Hyundai achieved a certain degree of success in the European SUV market, but the luxury segment is totally different,” the official said, asking not to be named.
Still, in the eyes of European purchasers of luxury vehicles, Hyundai sedans have been perceived as having a poor image and unreliable durability compared with its rivals: BMW's 5-Series and Mercedes' E-Class
For the first eight months of this year, Hyundai sold only 435 Grandeur models in Europe, according to the company. The Grandeur is Hyundai's top-of-the-line model.
The planned launch of Genesis comes at a time when Hyundai is striving to shake off its poor-brand image, known for generous warranties and low prices.
Along with its affiliate Kia Motors Corp., Hyundai aims to become the world's fifth-largest carmakers by 2010.
On Wednesday, the chief of BMW's South Korean unit also advised Hyundai to focus on building its brand and value.
“The gap in automobile technology will get closer in the future,” said Kim Hyo-joon, the chief executive of BMW Korea, in a speech. “The real opportunity for everyone is to figure out how to map out a distinct business approach in brand, including design and service.”
“Whenever I see Hyundai Motor's small and mid-sized cars, I think there's only few automakers that could make the vehicles at such a cost level,” Kim said, referring to Hyundai's cost-competitiveness in entry-level cars.
If Hyundai Motor puts its focus on brand, Kim said, the South Korean carmaker will become a formidable rival in the global auto industry.
