Market Insight: Genesis ‘laser focus’ on sales

GENESIS says it is “laser focused” on getting a greater number of Australian customers into its vehicles, and that is not deterred by the low sales figures that have accompanied the brand’s first seven years in this market.

Having notched up just over 1900 sales last year in Australia, the South Korean luxury brand sold just 12 per cent of the volume of Japanese importer Lexus, and just over 10 per cent of German competitor Audi.

Against stalwart premium brands BMW and Mercedes-Benz, Genesis managed relative sales of 7.3 and 7.8 per cent respectively.

But Genesis says it is determined to grow its presence in Australia and is by no means ready to exit the market in a fashion similar to that of short-lived Nissan premium brand Infiniti or follow its British counterpart by merging sales operations back into Hyundai showrrooms.

Speaking with GoAuto at the launch of the facelifted GV80 and its new GV80 Coupe derivative in Melbourne last week, newly inducted head of Genesis Motors Australia, Justin Douglass, said the importer is determined to continue its upward trajectory and is ‘comfortable’ with the sales number it has achieved to date.

“I’d actually say we’re really satisfied with where we’re at right now. We are a young brand, and we are growing year on year,” he said.

“Having had the opportunity over my last four months in the role to get around and talk with our customers and staff, I think there are some things we do very well, and that we’re starting to build a strong base of ambassadors for our vehicles.

“We are taking one step at a time … we are continuing to invest in the brand, and taking a stepped approach to build upon where we sit. But (overall) we are comfortable with where we are at the moment and to where we’re going in the future.”

Since its debut in the Australian market in 2017, Genesis has sold a total of just 4066 units, roughly the same number achieved by competitor Mercedes-Benz in the first three months of 2024.

Mr Douglass said the brand’s smaller presence in the Australian market is one that allows it greater opportunities over the coming years, with updated model offerings, an increased number of electrified models, and a positive future outlook central to sales growth.

“Our share of voice is relative to our size in the market … and awareness is still a big opportunity for us at the moment; it’s both a challenge, and an opportunity,” he added.

“Every day we’re putting more cars on the road, and we are very active at the moment from a marketing perspective with some pre-launch active (underway) around the GV80 … so we’ll have assets and noise out in the market that will help grow that awareness.”

Whether that awareness is enough to see the Genesis brand resonate more strongly with Australian customers remains to be seen. Sales of certain models have nosedived in recent times, falling well short of the success of their more conventionally styled predecessors.

In particular, the GV70 – a mid-sized SUV offering comparable to that of the Audi Q5 or BMW X3 and one of the brand’s best-selling models – fell from a high of 153 units per month in June last year to an average of just 71 units per month over the first quarter of 2024.

While supply of the model remains strong, the reasoning behind its falling sales is one Mr Douglass was reluctant to comment on.

“There are certainly no supply issues with any of our products at the moment. Each model has its own target, but we do not share that information publicly,” he stated.

“That car suffers from a lack of awareness – as does our brand. When you look at the budgets we have, and the job we have in promoting the brand given its share of voice, our overall messaging is representative of that mix.

“Obviously, we have the opportunity to sell more cars, but where it sits right now is probably representative of the marketing effort that is being put into it.”

Mr Douglass said that as well as building sales volume and awareness, Genesis was determined to continue its plenteous customer focus, saying that the aftersales support and level of customer care it offers would continue to form a significant portion of the brand’s USP.

“Our immediate focus is to continue to grow that awareness of the brand and to make sure all the positive messages about what Genesis stands for get out there,” he added.

“There is an absolute laser focus on making sure that we deliver the best customer experience possible with the product ranges and the services that we have.”

Comparative premium brand sales 2017 – 2024:

Source: VFACTS