AWD Genesis Lures Equus Buyers
The second-most-expensive Hyundai car is cannibalizing sales of the most-expensive Hyundai car, as all-wheel drive proves alluring to buyers in cold-weather markets.
June 3, 2015
HUNTINGTON BEACH, CA – Sales of most models in Hyundai’s U.S. lineup are in the black this year, so the Equus’ 35.2% decline through May stands out.
While it always has been the higher-volume model of the brand’s two near-luxury sedans, a newer, more luxurious and less-expensive Genesis 4-door is cutting into Equus sales like never before.
“The Genesis has cost the Equus business…there’s no doubt it’s taken sales away from Equus,” Hyundai Motor America CEO Dave Zuchowski tells WardsAuto in an interview at a ’16 Sonata Hybrid media event here.
Hyundai launched the second-generation Genesis about a year ago to positive reviews, which called out the car’s premium appearance, as well as its added content.
That content includes all-wheel drive, which Zuchowski says is proving alluring to Equus shoppers.
“People would like an Equus, but need the AWD capability,” he says, noting the next-generation Equus due in summer 2016 will offer essentially the same AWD system as the ’15 Genesis. The Genesis uses Magna’s HTRAC AWD.
Some consolation for the Equus falloff is that the AWD Genesis is winning over buyers in traditional luxury markets where Hyundais typically have not sold well.
“Our growth with Genesis has been in strong premium markets that we’ve underperformed in, like New York and Chicago,” Zuchowski says, noting 85% of the luxury vehicles sold in those markets are equipped with AWD.
WardsAuto data shows Genesis sales were up 34.9% through May to 14,757, growth Zuchowski says is driven by the new sedan.
Hyundai also sells a Genesis coupe. The CEO says an introduction date for a next-generation of the 2-door is unclear. The car, which leans more toward performance than premium-ness, launched in the U.S. in spring 2009 and has not been fully redesigned.
Rumors persist the next-gen Genesis coupe will receive a twin-turbo V-6 reportedly slated for the Genesis sedan in 2017 or 2018 and which powered Hyundai’s 2013 HND-9 coupe concept.
Zuchowski expects Hyundai will sell 25,000-30,000 Genesis sedans and coupes this year in the U.S. and about 3,000 copies of the Equus.
Equus deliveries tallied 3,415 in 2014, while Genesis sales totaled 29,992 units.
You May Also Like
