Hyundai Has A Poor Image In China, Might Bring In Genesis To Fix It

Hyundai is said to be planning a dramatic expansion and branding reboot in China due to dwindling sentiment of the South Korean firm’s vehicles.

Sources close to the plans tell Reuters that Hyundai is intending to open its first store in China shortly, could accelerate the local launch of its SUV models and assemble its high-end Genesis models in the country.

It is thought that Chinese consumers are upset with Hyundai because of South Korea’s deployment of a U.S. anti-missile defense system. Many in China also simply view Hyundai as a manufacturer of cheap taxis.

According to Asia Pacific chief of KHS Markit Automotive James Chao, Hyundai has poor brand recognition in China and isn’t competitive.

“Hyundai has an in-between brand that doesn’t have a clear identity in China, and there’s the backdrop of poor China-Korea relations. Newly introduced SUVs should help, but they are late to the game,” he said.

Beyond introducing its SUVs to China, Hyundai’s possible decision to assemble Genesis models in the country is seen as a big move. Insiders suggest the South Korean carmaker will ship kits to China where the vehicles will be assembled in a move which will also slash import tariffs by more than half.

Genesis is expected to launch in China within two years but in a statement, said no specific decisions have been made.

“While the Genesis brand is reviewing a variety of strategies for the China market, no specific decisions have been made yet,” the company said.