AFTER demonstrating its credentials with the standalone Genesis large sedan and the recently launched G90 limousine, Hyundai Motor Company is now moving into the high-volume but ultra-competitive mid-size prestige sedan segment with the forthcoming all-new G70 series.

Previewed in the Big Apple last week by the ‘New York Concept’, the G70 is in the final stages of development and expected on sale in Australia in the second half of next year, joining the G80 – which the current large sedan will revert to with a facelift due later this year – and taking its place in a segment dominated by the Mercedes-Benz C-Class, BMW 3 Series and Audi A4.

Jaguar has also become a major player with its new XE, while the Lexus IS is likewise at the top end of a field which has come to include sleeker niche derivatives such as the CLA-Class, 3 Series Gran Turismo/4 Series Gran Coupe and A5 Sportback – models that Hyundai Motor Co Australia believes the G70 will match in terms of style, technology and, up to a point, performance.

HMCA is not prepared to put numbers on the table for anticipated sales once the G70 reaches the market, but this is the biggest-selling class for prestige vehicles in Australia – across all passenger car segments as well as SUVs.

A neat 26,000 sales of medium-size cars above $60,000 were recorded last year, up 18.8 per cent on 2014 – the biggest increase in any of the prestige car segments – and representing 40 per cent of all prestige passenger car sales spanning light, small, medium, large, upper-large and people-mover segments, as well as the higher-end sportscar classes.

Executive sedans and the smaller-volume body styles that make up the segment cannot match the strong sales growth among the various sizes of SUVs – something Hyundai will address with two all-new Genesis SUVs due before the end of the decade – but the mid-size passenger car segment will, for years to come, stand as a benchmark in the industry and illustrate just how much acceptance there is in the marketplace for a Korean luxury brand.

The one-size-larger Genesis sedan – priced from $60,000 plus on-road costs at the entry level, rising to $71,000 with a Sensory Pack and $82,000 with an Ultimate Pack – has been on sale for almost 16 months, launching in November 2014 and accumulating 540 new registrations in its first calendar year.

In the first two months of 2016, Genesis sales are down 7.1 per cent on 92 units, reflecting early demand a year ago when the vehicle was new to market.

By comparison, Mercedes posted 1428 E-Class sales last year (-9.0 per cent) and BMW sold 1038 units of the 5 Series (+17.7 per cent), while as we have previously reported, HMCA management considers the Genesis sedan’s outselling of the Lexus ES (394) and GS (139) combined as a measure of success.

The G70 will have its work cut out for it, carving out a place in a segment in which Mercedes recorded 9373 sales last year – up 60 per cent on 2014, and not including 3659 CLA sales on top of that – while BMW sold 4146 examples of the 3 Series, Audi delivered 2478 A4s (and now has a new-generation model in showrooms) and Lexus found 2036 buyers for the IS.

Other players include Volvo and its S60/V60 twins which managed 972 sales combined in 2015 – a range that been rejigged and taken a major price cut early this year – and Infiniti with its Q50, which reached 305 sales last year and has a significant model upgrade coming in the months ahead.

And Jaguar, which launched the long-awaited XE in September last year and will introduce its first upgrade in the next few months, has sold 299 XEs in the first two months of 2016, placing it right up there among the top five brands in the segment.

There are no moves to build the G90 in right-hand drive and bring it to Australia, which would place Genesis against the formidable Mercedes-Benz S-Class, BMW 7 Series and Co.

There is also no confirmation at this stage that the mid-size and large SUVs and a G70-based coupe working their way through engineering development for release by 2020 will also be available for Australia, although expectations are high that they will be tailored for this market.

Their role in building brand image, awareness and showroom presence will help consolidate the fledging Genesis marque here, although widespread consumer acceptance and sales look to be longer-term ambitions.

HMCA itself admits the road that lies ahead will be long and involve a great deal of hard work.

By Terry Martin