A sleeper hit is usually a song or film that is overlooked at the time of release, only to be "rediscovered" and spotlighted to popular reception at a significantly later time. The auto market recently saw its own sleeper hit, the late dreamer, the Genesis G70. Although the youngest sibling of the luxury G-series sedans entered the market three years ago, it is enjoying a fascinating sales growth in recent months. This rebound is being observed not only in Korea, but also in the U.S., a prime export destination for the Genesis. We took a closer look for answers behind this uncommon phenomenon.
The Genesis G70 grows in popularity with time
The Genesis G70 sales figures show a convex curve against time, in both Korea and overseas
U.S. sales figures show what is going on. Last December in the U.S., only 229 G70s were sold. Then in January, MotorTrend named the 2019 Genesis G70 the recipient of its 2019 Car of the Year award, raising sales to 596 units in January alone. Sales continue to climb to the 800s in February, March, then April, then bumped up to 1,447 in May.
The G70’s boosted brand awareness is helping close the distance with competing models in the U.S.
The near-two-fold bump in May sales placed G70 within reach of its main rivals - the German premium sedans. BMW's 3 Series sales ramped up to 4,364 in May, boosted by its recent model change. Mercedes-Benz's C Class and Audi’s A4 each moved 4,054 and 2,223 units in May, respectively.
Compared to the degree of brand awareness by the pre-established competition, and considering that the G70 was released in the U.S. only 7 months prior, the performance is outstanding. The 3 Series, C Class, and the A4 have been a mainstay at the top of the U.S. auto market for years, even decades. Even against BMW’s 3 Series refresher boost, the G70's market reception holds its own. As a result this May, G70 worldwide sales surpassed more than 3,000 units around the world.
Sleeper hit comes around 3 years after Korean market debut
The G70 is enjoying a "sleeper hit sales growth" in the Korean auto market
The growth in volume is remarkable in Korea. From January to May, the G70 sold a total 7,694 units domestically. This is a notable upswing over the 5,783 units sold in the same period last year. Ordinarily, sales peaks at the time of release and gradually tapers down over time. The G70 is an oddity in that sense, maintaining consistent sales since 2017, over minor changes to the model, such as model year refreshes. Furthermore, these numbers grew despite the strong segment competitor BMW’s 3 Series being released with a new model. Despite the challenges, the G70 appears to have earned and maintained the market's interest and appreciation.
The G70 sales performance is encouraging, even against the popularity and performance of the BMW 3 Series’ import into Korea. Between January and May 2018, the 3 Series sold 6,824 units and the G70 sold 5,783 - a close second. Earlier this year, the G70 sales absorbed the standby demand for the 3 Series, scheduled for release in the first half of 2019, reaching 7,694 units sold. The numbers show that customers looking for premium compact sedans are finding their needs satisfied by the G70.
The G70's growing sales in the U.S. and the “sleeper hit” sales growth in Korea. What’s under the hood?
The G70 makes lasting impressions in the U.S. auto market
The G70's debuted in the U.S. with highest honors
Off the starting block, Genesis G70 received stellar reviews and awards, but sales was slow to follow the praise. The U.S. auto market is a place of fierce competition for premium brands, with German brands performing splendidly with dominant presence in the premium market for the past several decades. It was not easy for the G70 as a sophomore entrant to compete for attention.
The G70 is an IIHS Top Safety Pick +, the highest rating for vehicle safety
Against all odds, the G70 was named the 2019 MotorTrend Car of the Year, and then the 2019 North American Car of the Year by the same magazine. Heads slowly turned not only in the U.S., but all around the world. On the safety front, the G70 earned a TSP+ rating from the IIHS (Insurance Institute for Highway Safety), the highest rating for collision safety tests given by the institute.
Riding the wave of outstanding reviews and ratings, the G70 took consumer and media spotlight in a stride. Many of the media’s test drives and rides favored the G70 over the premium German sports sedans for not only being aesthetically pleasing but also satisfying high standards for performance and quality. Immediately upon debut, the G70 was marked as a force to be reckoned with in the fierce competition of the U.S. auto market.
The very embodiment of premium performance
The G70 is every bit of the description premium performance sedan
The G70 is the first high-performance sedan under the Genesis brand, but its outstanding performance is no beginners luck. Genesis really threw down the gauntlet with its foray into the premium performance sedan segment. The premium brand segment requires not only a keen and sensible eye for luxury, but also the delivery of outstanding driving performance; not an easy pairing to attain in such a competitive market.
Born and built on a rear-wheel-drive platform, the G70 shows off dynamic handling and powerful powertrain performance. The top performance model features a 3.3L T-GDi engine with a maximum output of 370 hp that takes the G70 0-100kph in 4.7 seconds.
The interior design of the G70 is ergonomic and luxurious
The G70's interior design is highly ergonomic, based on HMI(Human Machine Interface) designs. Auto magazines praised the G70 for its tastefully luxurious interior built from high-quality materials rich with feeling and emotions, such as real aluminum and fine nappa leather. The U.S. consumer market heard and read the stellar reviews as the G70 rolled out, and sales soon increasesd.
The 2019 G70, perfect improved
The G70’s new model year offers more luxury and performance
The new model year change offers amazing value. Since establishing itself as a premium performance sedan in the market, the G70 underwent a model year update October last year. Upgrades reflected consumer preferences in the market, including the motorized trunk door and the digital 3D cluster. Sporty alloy wheels were also added, greatly enhancing the overall value.
Nearly 85% of G70 buyers opt for mid-to-top tier trim levels. This is an extraordinary ratio not seen in standard consumer segments. Only 15% chose entry-level trims per each powertrain model. This landslide ratio testifies to the G70's success in securing a premium market position where purchase is less affected by cost-effect considerations, and consumers are less willing to compromise for stylistic and emotional satisfaction.
Furthermore, Genesis’ top-of-the-line driver assistance system package, the Genesis Active Safety is chosen 68% of the time, reflecting the high safety demands characteristic of premium consumers.
The G70 as Genesis brand staple and icon
The G70 successfully positioned itself as the quintessential Genesis experience
In the end, the G70 secured a strong market position upon entry, showing performances earning it a designation as the segment's super rookie. The G70's outstanding performance in the global market not only boosted the brand value of Genesis, but also increased overall sales volume of the premium brand. As Genesis’ entry-model, the G70 certainly outclassed itself.
