Hyundai wants to debut Genesis in India, but only after clarity on tariffs
South Korea's Hyundai Motor Co. wants to debut its luxury brand Genesis in India next year or the year after, but is awaiting clarity on import duties on fully built cars, two people aware of the plans said, at a time its sales have slowed in the world's third-largest auto market.
The company is considering launching the GV80 luxury sport utility vehicle (SUV) and the G80 full-sized sedan as its Indian subsidiary struggles to fend off competition from Mahindra and Mahindra Ltd and Tata Motors Ltd., the people said on the condition of anonymity.
'Whether to import completely built units or completely knocked down (CKDs) units and assemble them here will be decided once there is clarity on tariffs," one of the people cited above said.
Currently, completely built units (CBUs) attract an effective tariff of 110% in the country, while CKDs—cars broken down into individual parts and then shipped in for assembly in India—face an effective duty of 16.5%.
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In July last year, India started reviewing the Comprehensive Economic Partnership Agreement of 2010 with South Korea. As the country also negotiates deals with other trading partners, including the US and the European Union, levies on CBUs are anticipated to go down. Even Elon Musk-led Tesla Inc.'s India foray hinges on reducing tariffs on imported cars.
The entry of Genesis, along with plans to launch 26 new models by 2030, could bolster the portfolio of India's second-largest carmaker, which saw its sales fall 3% to 598,666 units in fiscal 2025. In April, Hyundai Motor India Ltd. slipped to the fourth position by sales as Mahindra and Tata Motors edged ahead.
An SUV-dominated line-up has helped Mahindra narrow the gap. From a share of 5.35% versus Hyundai's 17.36% in FY21, Mahindra now commands 12.34% compared to 13.47% for the Korean giant's Indian unit.
Also read: Hero-backed Euler Motors eyes profitability by 2029 after aggressive expansion
Hyundai India declined to comment on the subject.
New CEO's push
The move to introduce Genesis accelerated after José Muñoz, who took over as Hyundai's global president and CEO in January, visited India in March, the people quoted earlier said.
Muñoz, who joined the company in 2019 after a 15-year stint at Nissan Motor Corp., is credited with the success of the Genesis brand in the US as sales rose from 10,312 units in 2018 to over 75,000 cars in 2024.
The entry of Genesis into the country has been speculated for some time now. It was believed that the brand would enter the market in 2020, but then the Covid-19 pandemic struck. Some reports suggested that the luxury brand could be introduced by late 2025, but that was put on the backburner last year ahead of the initial public offering (IPO) in October.
But with Hyundai witnessing a slowdown in India, the global management is again keen to introduce the luxury brand to capitalize on the growing premiumization trend in the Indian market.
'The luxury market has been identified as a key segment for growth and Hyundai would like to tap that," the second person quoted earlier said.
Luxury dreams
Luxury car sales in India rose just 3.31% in the financial year 2025 to 51,000 units, but it was still a record high. The market is led by Mercedes-Benz, followed by BMW and Jaguar Land Rover.
Genesis was spun off as a standalone brand in 2015 as part of the South Korean giant's bid to take on BMW, Mercedes-Benz, and Lexus, among others. It is present in several markets, including Korea, the US, Canada, the Middle East, Australia, Europe, and China. It sold 229,532 units globally in 2024.
Genesis' entry into India would come as Hyundai plans an aggressive expansion in the country with 26 new launches by 2030. This includes 20 internal combustion engine or ICE models and six electric vehicles. Hyundai also plans to introduce a hybrid electric vehicle model.
Also read: Maruti, Hero get export earnings boost as domestic market remains shaky
'We believe Hyundai Motor India remains well placed to benefit from the premiumization trend in India, given its mix in favour of SUVs," analysts at Motilal Oswal Financial Services Ltd wrote in a note on 17 May.
Hyundai's shares have risen 6.15% so far this year, while Nifty Auto is up 2.42%
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