Hyundai Motor Co., the South Korean automotive giant, is reportedly gearing up to introduce hybrid models under its luxury Genesis brand starting next year. This strategic pivot comes as the global electric vehicle (EV) market experiences a slowdown, prompting manufacturers to reconsider their electrification timelines. Industry sources revealed on Tuesday that this move is aimed at appealing to consumers who are still hesitant to fully embrace all-electric vehicles, signaling a significant development for the luxury automotive segment and the future of the Genesis Hybrid Suv.
The Genesis Electrified GV70, showcasing its luxury electric SUV design and features, highlighting Hyundai's commitment to electric vehicle technology within its premium brand.
Hyundai Motor Group, which also includes Kia Corp., initiated the development of hybrid powertrains specifically for Genesis vehicles in late 2023. The first Genesis hybrid variant is expected to debut next year, featuring a robust 2.5-liter engine. This is a step up in engine size compared to the 1.6-liter engine found in Kia’s Carnival hybrid minivan, suggesting a focus on delivering both performance and efficiency in the upcoming genesis hybrid suv and sedan models.
Initially, hybrid engines are likely to be incorporated into Genesis’s popular models, such as the G80 sedan and the GV70 SUV. These models are already well-established in the luxury market, and the introduction of hybrid versions could broaden their appeal to a wider customer base. Furthermore, Genesis dealerships in the United States have reportedly urged Hyundai to develop a plug-in hybrid Genesis model, indicating strong market demand for this technology. However, Hyundai has not yet confirmed whether it will pursue plug-in hybrid models for the Genesis brand, which would involve incorporating battery technology similar to that used in all-electric vehicles.
Genesis currently boasts a diverse lineup, including the G70, G80, and G90 sedans, as well as the GV60, GV70, and GV80 SUVs. Hyundai’s original plan was to transition all new Genesis vehicles launched from 2025 onwards to fully electric powertrains. However, the recent cooling trend in the EV market, observed since the latter half of last year, has led to a revision of this strategy. Major global automakers like General Motors, Ford, Stellantis, and Volkswagen have also responded to the changing market dynamics by scaling back investments and development timelines for EVs, making Hyundai’s move towards genesis hybrid suv a part of a larger industry trend.
The Genesis G90 luxury sedan, an example of Genesis's commitment to sophisticated design and high-performance vehicles, representing the brand's premium status in the automotive market.
Currently, Genesis offers three EV models: the electrified G80 and GV70, which are electric versions of their combustion engine counterparts, and the GV60, built on Hyundai’s dedicated EV platform, E-GMP. In 2023, Genesis achieved sales of 225,189 units, a slight increase from 215,128 units the previous year. However, sales of its all-electric vehicles saw a minor decrease to 18,759 units, compared to 18,846 units in 2022, further reinforcing the rationale behind diversifying into hybrid offerings like the genesis hybrid suv.
HYBRID VARIANTS ACROSS HYUNDAI AND KIA’S LINEUP
Beyond Genesis, Hyundai and Kia are also expanding their hybrid vehicle range. Hybrid variants are planned for flagship models such as the Hyundai Palisade SUV (featuring a 2.5-liter engine), a revamped 1.6-liter Santa Fe SUV, and the Staria minivan, all expected within this year. Kia is also set to introduce a hybrid version of the third-generation Seltos compact SUV next year.
The growing popularity of hybrid vehicles is evident in recent sales figures. Hybrids accounted for 10.6% of Hyundai’s global sales in the fourth quarter of last year, up from 7.1% in the same period the previous year. Conversely, the proportion of EVs in sales decreased to 5.3%, from 5.7% the year before. Kia reported an impressive 51% surge in hybrid car sales in the US last month compared to the previous year, while Hyundai Motor’s plug-in hybrid car sales also saw a significant increase of 41%.
The Hyundai 5th-generation Santa Fe SUV, launched in 2023, showcasing Hyundai's latest design and technological advancements in their SUV lineup, appealing to modern family needs.
Hybrid cars offer a compelling combination of improved fuel efficiency and reduced emissions compared to traditional combustion engine vehicles. For automakers, hybrids can also be more profitable, as they often require less substantial subsidies to incentivize sales compared to EVs. Toyota, despite being a relative latecomer in the EV race, sold 3.4 million hybrid cars, a 31% increase year-over-year, demonstrating the strong market for hybrid technology. Honda also recently unveiled the new Civic hybrid, with plans to ship the full hybrid hatchback to the US market this year.
Hyundai’s existing hybrid lineup includes variants of the Sonata, Grandeur, Kona, Tucson, and Santa Fe models. Kia offers hybrid versions of the K5, K8, Niro, Sportage, Sorento, and Carnival models. This established presence in the hybrid market positions Hyundai and Kia well to capitalize on the current shift in consumer preferences and market dynamics with models like the anticipated genesis hybrid suv.
According to an automotive industry official, “As the transition to electric vehicles is unexpectedly delayed, hybrid cars have taken the lead in the global car market.” This sentiment underscores the strategic importance of hybrid vehicle development for automakers. “Now the key to survival becomes when they will launch hybrid cars with a competitive lineup,” the official added, highlighting the urgency and competitive nature of the evolving automotive landscape, where the genesis hybrid suv is poised to play a significant role.
