[EXCLUSIVE] Genesis G70 sports sedan to be discontinued

Industry

Published: 30 Jul. 2023, 18:00 Updated: 17 Oct. 2023, 11:00

[EXCLUSIVE] Genesis G70 sports sedan to be discontinued

The latest Genesis G70s [HYUNDAI MOTOR]

The Genesis G70 sports sedan will be discontinued for good amid slumping sales and drivers' preference for bigger vehicles.

The model, manufactured by Hyundai Motor, is Korea's first luxury sports sedan and the first independent car under the Genesis brand that debuted in 2015.

“Recently, there was an official announcement within the company that it officially halted the development of RN2, a project name for the next G70,” a source directly related to the project said.

“This is the first time Hyundai announced the halt, although there were so many rumors about the temporary halt [of the development],” the source added. “Weak sales is the main reason.”

The RN2 project aimed to develop G70's next fully revamped version, which was about to be released as an EV.

Hyundai Motor declined to comment, adding that “nothing has been confirmed.”

Genesis is Hyundai Motor's standalone luxury brand.

The latest G70, introduced in May, is a facelift version with no significant changes exteriorly and interiorly.

Facelifts are normally introduced every two to three years, meaning the model's next facelift will take place in late 2025 or 2026 if it is planned.

But Genesis announced last year that all Genesis vehicles will be purely electric starting from 2025.

Emblem of the latest Genesis G70 [HYUNDAI MOTOR]

“In the early stages of development, the next G70 was about to get much bigger than the current model," the source said. "But in that case, it will not be notably different from G80, and that's why Hyundai decided to drop the project."

The G80 is a mid-size sedan, sandwiched between the G70 and G90. It is currently the most popular vehicle in the Genesis brand in terms of sales.

Sales of the G70 have sharply declined in recent years amid the increasing demand for more spacious sedans and SUVs.

First introduced in 2017, the G70 got off to a running start with a total of 4,345 units sold in only four months of introduction.

G70 was in the spotlight at the time as the first independent car under Genesis as the previously launched G90 was a successor to Hyundai’s Equus sedan and the G80 was the successor to Hyundai’s Genesis DH.

Sales grew to 14,417 in 2018 and 16,975 in 2019 but started to slide in 2020, with only 7,910 G70s sold, down 54.4 percent on year. Sales fell to 7,429 in 2021 and 6,087 in 2022.

The situation continues to worsen, with a total of 2,099 G70s sold this year through the end of June, down 26.3 percent on year.

In European markets, only 96 units were sold in the whole of 2022, although Genesis launched a wage-style strategic G70 Shooting Brake specifically targeting European drivers. A total of 144 G70s were sold through the end of April 2023.

The rear of the latest Genesis G70s [HYUNDAI MOTOR]

Sedans are consistently losing popularity in Korea, with SUVs stealing their spots.

In 2021, of all passenger cars sold in Korea, SUVs made up 54 percent while sedans accounted for 46 percent. It was the first time sales of SUVs surpassed those of sedans in Korea's auto market.

SUVs’ share rose to 56 percent in 2022, according to data from the Korea Automobile & Mobility Association.

Genesis is pivoting by expanding its SUV lineup, which currently includes the GV60, GV70, electrified GV70 and GV80 models.

A coupe version of the GV80 will be released later this year, and a large-size GV90 is planned for 2025, which will take the lineup to six.

BY SARAH CHEA [chea.sarah@joongang.co.kr]