HMCA COO Scott Grant.

HYUNDAI is preparing the ground for the arrival of its Genesis luxury sister brand in Australia in March next year, with 30 of the 165 existing Hyundai showrooms selected to support the new marque across the country.

The updated Hyundai Genesis will be the first model to go on show in the repurposed network of dealerships after it transitions into a standalone Genesis model dubbed the G80, having shed its Hyundai badging, but it will be followed by a BMW 3 Series rival in the third quarter.

Exactly how the showrooms will look is still being determined, but speaking at a media event last week, Hyundai Motor Company Australia (HMCA) chief operating officer Scott Grant confirmed that the participating dealers had now been selected and more details would follow soon.

“We have now decided that we will sell Genesis through about 30 dealers nationwide where it makes sense – the volume is there, the opportunity is there, the market generally is closer to that dealership,” he told GoAuto.

“At the moment it’s more like a shop-in-shop arrangement but that could well change. The whole product plan and strategy is still developing.”

G force: The Genesis G80 will lead the way for the new luxury brand in Australia next year but its BMW 3 Series-rivalling smaller sibling will have a better chance at winning volume sales.

Mr Grant explained that the brand would not roll out standalone dealerships at this stage and all of the 30 sites would continue to offer Hyundai models, albeit overshadowed by a greater Genesis presence at each of the sites.

However, those Hyundai outlets not selected would no longer be able to stock the G80 Hyundai Genesis successor.

“Not all of our Hyundai dealers will be selling Genesis but all of our Genesis dealers will sell Hyundai.”

Beyond the 3 Series, Audi A4 and Mercedes C-Class rival that is likely to wear the G70 moniker and was previewed by a concept at this year’s New York motor show, Mr Grant said the SUV segment was a possibility for the Genesis brand.

“We have the one product in the market now that will be revised in March next year to take on the global nomenclature of the G80 Genesis and then there will be a second product launch, the right-hand drive, in about the third quarter of next year, which will be a smaller product,” he said.

“It will be a 3 Series competitor. I reckon you get credentials from there and then you go into an SUV.”

Since the Hyundai Genesis launched in Australia in 2014, the large luxury sedan has had a cool start with 540 sold last year and 257 to the end of July this year, but Mr Grant said there was potential to build momentum with the end of local car manufacturing as well as the greater dealership presence.

Genesis Concept

“We’ll do well with it I think. There are opportunities from existing owners and people who used to buy (Ford) Fairlanes and (Holden) Calais from the local manufacturers when that product is not available anymore.

“Maybe for those people a Mercedes or BMW badge is a bit too pretentious in their driveway.”

Mr Grant said the quality of the products was certainly critical to the performance of the brand in Australia, but finding a footing here would be a gradual process requiring time and commitment.

“The quality of the product is outstanding and is probably as good as some of the more traditional luxury brands, but not everybody is going to be ready for that and not now, so some of that will develop over time just through the strength of the product and time. We will get there in the end.

“The scale of the task is not lost on me whatsoever … by no means would I sit in front of anybody and say we’ll be the number one luxury brand in Australia in the next two years.”

Mr Grant concluded by explaining that his main focus was not on products but on tailoring the sales and ownership experience to the high demands and tastes of Australian customers.

“To some extent for us the product is the easy part because that’s managed by someone else globally .. I can’t do anything about that, but what I can do something about is how our dealers and in Australia how those products are represented, sold and supported.

“The big challenge for us is to do with the experience, relationship and the sales process and aftersales process.”

By Daniel Gardner