“Failure is simply the opportunity to begin again, this time more intelligently,” said Henry Ford.
Hyundai of Korea and its Kia sibling have been showing Ford the way in the modern world of auto manufacturing, but maybe its Genesis premium subsidiary’s European operation can take some comfort from the great man’s words.
Genesis’s first attempt to win premium sales in Europe led by the GV60 has stalled; its second attempt looks challenged as it coincides with the arrival of the Chinese behemoth.
“They may as well pack up and go now. Genesis was always on the road to nowhere, to paraphrase the Talking Heads (1985 hit song),” said Schmidt Automotive Research founder Matt Schmidt.
Jamel Taganza, vice-president of French auto consultancy Inovev, is more positive, but says success will take time.
“Personally, I still believe there is market potential in Europe for a brand like Genesis, especially if Lexus continues to invest only cautiously in the EV segment. However, for Genesis, this is clearly a long-term strategy,” Taganza said in an email exchange.
Genesis is radically revamping its strategy. The plan was to beat the Germans at their own game. Offer fantastic quality premium cars at lower prices than BMW, Audi, Mercedes and Porsche with unbeatable personal service, but it spluttered. In 2025, Genesis sold a miniscule 2,476 cars in Europe, down 6.7% from the previous year. Compare this with the U.S. market, where Genesis sold 82,331 vehicles in 2025, up almost 10% on the previous year, outselling Nissan’s Infiniti and closing in on Ford’s Lincoln.
China has other ideas
Genesis is still determined to make Europe work, adding France, Italy, Spain and the Netherlands markets to its initial concentration on Germany, Britain and Switzerland. The Chinese will have other ideas.
China is not just winning sales in the European mass market, it is stepping directly into the path of Genesis with premium offerings from BYD’s Denza, NIO, XPeng and Zeekr.
The plan was to entice Europe’s badge-obsessed buyers with tempting offers including lower prices, personal, concierge-style service and an end to dealerships. The first five years of servicing were included. Wherever you were in the country, Genesis would collect and return your car for its annual (or bi-annual) once-over. Not being German was thought to be an important sales incentive. Genesis concentrated on electric vehicles led by the GV60, and it planned on introducing only new EVs after 2025 and going all-electric by 2030. This year Genesis is also producing a hot version of the GV60 with its Magma racing.
Parent company Hyundai is a hugely successful global automaker selling more than 7 million vehicles a year, so it can afford to make some mistakes.
Global sales target 350,000
The sales targets were believed to be very ambitious, although Genesis never revealed details. But it does have a global sales target of 350,000 by 2030 and it sold 220,800 in 2025.
The trouble was Genesis’s EV-centric plan fizzled out as sales stalled, while Europeans stayed wedded to the German monopoly. Genesis was forced to change its model program to include hybrids and extended-range EVs (EREV). The concierge idea is being watered down in favor of dealerships, perhaps shared with Hyundai and Kia.
Inovev’s Taganza said Genesis has faced some unexpected problems since starting its European operation in 2021 –
- The positioning of Genesis within the Hyundai-Kia Group, has changed especially relative to Hyundai, as both brands have increasingly overlapped in the EV market.
- The arrival of Chinese brands, along with the announcement of the arrival of premium Chinese brands offering very competitive propositions.
- The strong response from German premium brands in the EV market, particularly BMW and Audi.
“All of this has made it more difficult for Genesis to establish itself as a true premium brand in Europe,” Taganza said.
Schmidt points out that even Toyota’s mighty Lexus has had trouble breaking into the European market.
“Lexus has been trying for almost 40 years now and still commands just 0.5% of the West European new passenger car market, while the premium market as a whole accounts for over 20% of the total market, and is dominated by German brands,” Schmidt said.
“When it comes to Genesis’s share you have to start adding two decimal places, given they delivered fewer than 3,000 units across the region last year. You can certainly see the logic behind the dream of building a premium brand in Europe given the profit margins tend to outnumber the volume sector in a normal year by a factor of 3, traditionally in an 8-10% corridor, but a new Asian brand stands little chance of penetrating the thick defensive walls which consist of at least half a decade of German brand equity and bragging power, no matter how good these new generation of Asian premiums are,” he said.
Stable residuals a must
“Plus, to make a premium business model work, stable residuals are a must. Gaining trust from large fleet partners also takes time, and that trust can’t be built overnight,” according to Schmidt.
Professor Ferdinand Dudenhoeffer, director of Germany’s Center for Automotive Research, doesn’t see the point of Genesis, which is likely to be overwhelmed by the big push from China.
“Genesis in Europe… that’s not going to work. Nobody knows the brand, the cars aren’t anything special, and now back to the old world of combustion engines and plug-in hybrids… that makes no sense. Simply sprucing up standard Hyundai or Kia vehicles with a bit of design just isn’t enough. Toyota hasn’t had much success with its Lexus, for example, in Germany,” Dudenhoeffer said.
Look out for Maextro
“In 2027, Xiaomi, Zeekr, Maextro & Co are trying to gain a foothold in the premium market in Europe. That could succeed, but Genesis… I think they should concentrate on the USA,” he said.
Maextro is a Chinese ultra-luxury electric vehicle brand co-developed by the tech giant Huawei and automaker JAC Group.
Genesis Europe has been asked to comment.
