Genesis considers EV production in China, following Toyota's move

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Genesis considers EV production in China, following Toyota's move

Published: 12 Mar. 2025, 18:14 Updated: 13 Mar. 2025, 14:57

CHO YONG-JUN
[email protected]

Audio report: written by reporters, read by AI

Genesis Electrified G80 sedan and Electrified G80 Magma concept vehicles are displayed at the 2024 Beijing International Automotive Exhibition held April 2024 in Beijing [NEWS1]

[NEWS IN FOCUS]

Genesis will begin localized production and research operations in China, and release EVs tailored to its market, as parent company Hyundai Motor makes an aggressive push into the country's premium sector.

Genesis China CEO Zhu Jiang told China's Economic Observer on March 2 that the brand would change its strategy of importing all of its vehicles from Korea and pivot to localized production, as well as research and development (R&D), within the country in an interview Yonhap News spotted Tuesday.

Genesis will also market a “new energy vehicle” — referring to battery-powered EVs, plug-in hybrids and hydrogen fuel-cell vehicles but not conventional hybrids — in the next three to five years, according to Zhu. The CEO did not disclose details of the upcoming vehicle in the interview.

A Hyundai Motor Group spokesperson confirmed to the Korea JoongAng Daily that Genesis is “looking into increasing local R&D efforts and developing models tailored to the Chinese market” and that producing models in China is “one of the plans” under review.

The move comes as Hyundai Motor as well as leading competitors, including Toyota Motor, ratchet up production in the world's largest auto market.

Hyundai Motor and Kia already manufacture certain models within China and have released offspring versions of their global variants to there. Beijing Hyundai Motor, a joint venture between Hyundai Motor and Beijing Automotive Group, manufactures a long-wheelbase version of the Sonata alongside China-specific vehicles like the Mufasa.

Toyota Motor launched its bZ3X in the country in early March, a small electric crossover designed for the Chinese market and produced by a joint venture between Toyota and GAC. The vehicle is priced competitively at 109,800 yuan ($12,120), designed to compete with domestic offerings.

Genesis also faces fierce from both Chinese brands and premium players from Japan and Germany, all of which have better brand recognition on Chinese turf. Genesis sells 10,000 vehicles in Korea every month, but sold only 1,500 or so in China in 2023.

All Genesis vehicles sold in China are currently manufactured in Korea and are subject to China's 15 percent tariff on auto imports.

“Hyundai Motor Group was affected by the rise of Chinese local brands in the market, even before they were hit with the Thaad [Terminal High Altitude Area Defense] crisis,” Kwon Yong-joo, Professor at Kookmin University’s Department of Automotive & Transportation Design, told the Korea JoongAng Daily, referring to the anti-Korean sentiment and economic retaliation spurred by Korea's decision to deploy the U.S. antimissile system in 2016.

“It reflects a change in Genesis' strategy in China if it decides to locally produce models within China, as it means that the brand is looking to compete with German rivals and premium EVs offered by local Chinese brands,” the professor explained. German luxury carmakers have long offered long-wheelbase versions of their C-class, E-class and 5 Series sedans, manufactured in China, while Genesis has relied on Korean imports.

“If Genesis manages to increase their competitiveness in the luxury segment in China, it could also benefit Hyundai Motor and Kia's brand image.”

BY CHO YONG-JUN [[email protected]]