Genesis News

People hate change. It’s just a fact of life, once we get accustomed to doing things a certain way, we’re happy to keep doing them even if a better alternative emerges.And if you want proof, look no further than the mixed results brands such as Genesis, Tesla and others have had with trying to make the buying experience better by doing away with the conventional new car showroom.But as Hyundai’s luxury brand has discovered, people actually prefer a conventional buying experience rather than the seemingly superior option Genesis is providing.The marque eschewed the traditional dealership model and opted for boutique-style retail spaces in Sydney and Melbourne CBDs which would arrange for a brand representative to bring a car directly to the would-be customer at their convenience. However, the brand has since added ‘Test Drive Centres’ in more conventional locations and recently announced plans to expand dramatically, with new showrooms on the Gold Coast and Sydney as well as introducing ‘agents’ that will be positioned at existing dealerships (most likely Hyundai dealers).Genesis Australia Chief Justin Douglass said the brand has tried multiple methods of reaching customers, but the preference is clearly towards the traditional.“So both sites do have the opportunity to test drive on site,” Douglass explained. “We do Genesis-to-you as well, so if a customer lives in that area and doesn't want to travel, to Parramatta, for example, or in Prahran in Melbourne, then our staff from those studios will take a car to them. So we certainly do sell cars from those sites, but certainly not at the level that we sell through our established showcases.” While Douglass made it clear the inner-city retail ‘studios’ will stay, he acknowledged they have some limitations.“I guess the opportunity for us is, when you look at the way the studios are structured, they're really brand experience centres. So we don't have the capability of showcasing our full range of vehicles at the sites," he said.“But, as I mentioned before, some customers are certainly happy to purchase through that type of environment, that type of experience, but you're right, there's still customers that prefer the traditional method, but we just happen to be conveniently located for those customers as well.”Genesis is by no means alone in this new trend of trying to make buying a car more convenient for buyers in recent years. It has been a period of upheaval in the car industry, with both Mercedes-Benz and Honda moving to the so-called ‘agency model’ that sees all sales handled directly by the brands, with the previous dealerships now only responsible for customer handovers. This has seen both brands endure a sales decline as seemingly both customers and dealers have come to terms with this new way of doing business.But that won’t deter new brands from trying to do things differently, General Motors Australia recently opened its first Cadillac Experience Centre in Sydney, with plans for more as it tries to compete with more established luxury rivals.Those who prefer to drive to a showroom, look at different vehicles, test drive and buy will likely be able to continue to do that for years to come though, as it will take a long time for people to accept such dramatic change.

It didn’t take a crystal ball to foresee Citroen’s departure from the Australian car market. The French brand had struggled for years, both to find its identity and sell cars to local buyers.Ultimately, it doesn’t matter about heritage, longevity or brand recognition if you don’t sell enough cars in the relatively small Australian market. Just ask the people at Holden about that.But with Citroen meeting what felt like an inevitable demise, it’s worth turning our attention to the other brands that face a similar struggle. To be crystal clear, this article is not suggesting any of the following brands are in imminent danger of departing the local market.Instead it is simply a study of those near the bottom of the sales charts that have a chance to improve their position, or risk suffering the same endless questions Citroen executives endured over the past decade.Rather than dwelling on the negatives, we’ll look at the ways these brands could turn their fortunes around in Australia.The little Italian brand just keeps plugging away with its solo model, the 500e (and its Abarth variant) to fly the flag now the petrol-powered 500 is gone after 17 years on sale.In the first half of 2024 Fiat managed just 290 sales, which represented a nearly 30 per cent decline on the same period in 2023.On the plus side, Fiat is under the wider Stellantis banner and will gain support from that, as well as the additional 533 sales of Fiat Professional's Ducato van. The reality is, Fiat is not a volume brand in Australia, it’s a high-margin niche one focused on electric cars in a still growing EV market. As long as the brand’s management accepts that and plans accordingly it will tick along steadily.In the first half of 2024 the British brand sold just 403 cars, which is a small number — even for a luxury brand. What’s really surprising is that that figure represented a near 70 per cent increase on the the first half of last year.But there isn’t any panic or even concern within the Jaguar offices. The Big Cat is in a holding pattern at the moment as the brand tries to reinvent itself (again) as an all-electric upper-luxury brand. So there is no investment in the current product line-up, with the XE, XF and F-Type all no longer in production.When the new electric models come online in the next year or two, expect Jaguar to leap back into action, but for now, expectations have to be kept in check.The problem for Genesis is it’s no longer at the beginning of its story. The brand has been on sale as a stand-alone entity for five years and has multiple models, including three SUVs. In other words, it’s had time to find its feet and has the key models you need.So why then did sales slide backwards 18.5 per cent in the first half of 2024? None of its models are finding much traction against an expansive and diverse array of rivals from the more-established rivals such as BMW, Mercedes-Benz, Lexus and Audi. Hyundai is used to playing the long-game, so I wouldn’t expect them to give up on Genesis anytime soon. After all, it’s taken Lexus the better part of three decades to become a thorn-in-the-side of BMW and Mercedes. Plus, Mercedes itself is struggling, taking a 24.1 per cent sales hit in the first half of this year.Genesis models have improved in quality, but the increase in price may stifle the potential for growth. It will be interesting to watch how the brand reacts and evolves in the next 12-18 months.Citroen’s French stablemate also makes this list. Selling just 1190 new vehicles in the first six months of 2024, Pegueot matched its 2023 sales result almost exactly (just four cars difference). While Peugeot does significantly better than Citroen, it’s still one of the smallest non-premium brands in the local market.It’s a shame, because it makes some very nice cars, arguably on par with competitors like Volkswagen and Mazda, but the decision to push more upmarket hasn’t helped volume.The addition of the Boxer, Expert and Partner commercial vehicles (at the expense of Citroen’s former offerings in the same segments) helps to boost the overall numbers, with the Partner the brand’s second most popular model behind the 2008.With Citroen gone, Peugeot will have one less obvious rival and can work to improve its reach, while likely remaining a niche brand. It feels a bit like we’re picking on the Stellantis Group in this story, but this is just the way the numbers have worked out. The American off-road brand should arguably be thriving in the current SUV and ute-dominated market, but the rugged Gladiator and Wrangler, as well as the more luxurious Grand Cherokee, just haven’t attracted buyers in big numbers.Only 1282 sales in the first half of the year, which represents a massive 52 per cent decline on 2023, is not a good position. Perhaps Jeep's new, all-electric and compact Avenger can help rejuvenate its sales and bring a fresh audience? That will certainly be what the brand’s local managers will be hoping for.

Hyundai has confirmed the launch of its next-generation hybrid technology that promises to leave the current crop of conventional hybrids in its rear-view mirror.Billed as Extended Range EVs (or EREVs), the new fleet will act much like Nissan's e-Power vehicles, in which the petrol engine is used only to recharge the on-board battery.Only the electric motor, or motors, drive the wheels, so you get an EV-like drive experience, but with the convenience of being able to refuel at regular service stations.The result, promises Hyundai, is a fleet of vehicles able to travel more than 900km on a single tank, meaning Sydney to Brisbane or Melbourne to Adelaide on a single tank, and that act as a kind of long-distance alternative to a regular electric vehicle.The move is in a direct response to the slowing EV market, forcing a quick shift in strategy from the Korean giant.“Looking back the past year, there were major changes to the automobile market, with the rosy projections for the EV transition giving way to heightened concerns,” Hyundai CEO Jaehoon Chang said at a recent investor conference.“The shift to EVs is currently slowing down. And with the recent slowdown in the EV transition, the demand for hybrids has been picking up.”Essentially an EV with a range-extending petrol engine, the vehicles will be powered with a single or dual-motor layout – meaning two- or all-wheel drive – and they'll be fitted with a single-speed EV-style gearbox.And because the petrol tank is providing the charge while on the move, they can make do with much smaller batteries than a typical EV.And this, says Hyundai, will make them significantly cheaper than an all-electric equivalent – the batteries will be some 66 per cent cheaper – while the lack of a conventional gearbox will lower the price further still."The new EREV will combine the advantages of internal combustion engines and EVs," the brand said in a statement."Hyundai Motor has developed a unique new powertrain and power electronics system to enable four-wheel drive with the application of two motors. The operation is powered solely by electricity, similar to EVs, with the engine being used only for battery charging."The new EREV also offers price competitiveness over EVs through battery capacity optimisation and allows both refuelling and stress-free charging while offering a superior driving range of over 900km when fully charged."Hyundai plans to have the new technology in market globally by 2026, but there is no word yet on the models it will appear in first, or when it will make its Australian debut.

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The Australian new-car market is facing a period of almost unprecedented change, say some legacy manufacturers, with the influx of new Chinese brands set to put out legacy manufacturers in what is already one of the world's most congested and competitive markets.