Published on : Jun 08, 2015
Hyundai Motor Co., the sedan heavy lineup of the automaker has held back its position in the U.S. market, which is predominantly powered by SUVs. The Korean car maker is devising plans to develop larger SUVs which is planned to be based on its Genesis luxury sedan, as divulged by company sources.
However, it may take two to three years for the model to be produced and available in the market, considering the poor track record of the South Korean company with bigger SUVs. Also not negating the poor performance of its pickup tracks and underscoring the challenge that the Korean car maker would have to go through for entering the high margin SUVs market dominated by American and Japanese competitors.
However, there is no certainty if Hyundai will launch the vehicle in the market, owing to considerations such as inadequate brand position in the higher priced SUV segment, and fluctuating oil prices which could erode the market for high fuel consuming vehicles.
As commented by a company source familiar with Hyundai’s vehicle development, the company is unsure about bigger SUVs. The auto maker is giving due consideration to an internal proposal, made last year according to which Genesis based SUVs would be appropriate to fill gap at the high end SUV range. The hook into the most attractive facets of the Genesis to enhance the overall brand image of Hyundai.
In the U.S., sales of the Genesis shot up by over one third between January and May to almost 15,000 which was much more than Hyundai’s total sales gains of mere 2.2%.