Genesis Sales forecast

[Simonwpb]

Do you think Hyundai will sell 30,000 Genesis sedans a year in the US? If not what is your forecast.

They have 763 US dealers so that is less than 40 vehicles per location a year or approx 8% on sales of 400,000 cars. (I think the US Automarket is something like 15 million cars a year).

http://www.manufacturing.net/News-Hyundai-To-Boost-US-Sales.aspx?menuid=286

 

[Sal Collaziano]

I'm not sure of the answer to this question - but I'm moving this post into the appropriate area. I think "Other Hyundai Models" is the wrong place.

 

[jwaters943]

If Chrylser can manage to sell 120-150k units of the 300 per year I see no reason why the Genesis shouldn't manage be able to meet it's modest sale projections. Yes, the 300 does have a significant price advantage in most trim levels, but the Genesis is a better car IMO. Sadly, both brands suffer from "image" issues.

 

[Sal Collaziano]

If Chrylser can manage to sell 120-150k units of the 300 per year I see no reason why the Genesis shouldn't manage be able to meet it's modest sale projections. Yes, the 300 does have a significant price advantage in most trim levels, but the Genesis is a better car IMO. Sadly, both brands suffer from "image" issues.

I agree.. 30,000 compared to at least 120,000 of the Chrysler 300? I bought a 300C for my wife and I intend on replacing it with a v8 Hyundai Genesis.. The 300 (to me) is a REALLY nice looking car. I love it. Because of it's looks and power (in v8 models), it sells quite a bit. I think that with the looks and power of the Genesis (v6 OR v8), it'll sell very well too.. I will actually be a little surprised if the Genesis doesn't sell MORE than 30,000 vehicles. Keep in mind that the Azera is a great car as well - but Hyundai did nothing to market it. This won't happen with the Genesis...

 

[GrandPrix08]

Only if the dealers don't play that markup games and the garbages called 'Market Adjustment'. As long as they exist, it will hurt the Genesis sales.

 

[Sal Collaziano]

Only if the dealers don't play that markup games and the garbages called 'Market Adjustment'. As long as they exist, it will hurt the Genesis sales.

They won't exist for long. Just in the beginning. Any manufacturer in this scenario will have dealerships that do this in the beginning.

 

[GenFan]

Do you think Hyundai will sell 30,000 Genesis sedans a year in the US? If not what is your forecast.

They have 763 US dealers so that is less than 40 vehicles per location a year or approx 8% on sales of 400,000 cars. (I think the US Automarket is something like 15 million cars a year).

http://www.manufacturing.net/News-Hyundai-To-Boost-US-Sales.aspx?menuid=286

Not if we can't get them! I want to see 15-20 of these things sitting on every dealer lot. You know, like the Azera. This gives me choice and the opportunity to negotiate!

 

[Simonwpb]

Not if we can't get them! I want to see 15-20 of these things sitting on every dealer lot.

I feel your pain! Hopefully they will have adequate stocks and start their marketing campaign by September.

 

[Simonwpb]

Hyundai posts their retails by model monthly. In June they sold 30 Genesis cars! I will post July results next week...

Model Jun-08
ACCENT 6,914
SONATA 16,875
ELANTRA 14,482
TIBURON 979
SANTA FE 5,863
AZERA 1,745
TUCSON 1,964
ENTOURAGE 499
VERACRUZ 682
GENESIS 30
TOTAL 50,033

 

[Sal Collaziano]

Very interesting! 30 in June, huh? July will probably be a big month.. This thread is getting very interesting.

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[jwaters943]

I got mine on the June 27th and was one of the first in the nation to buy a Genesis. I bet not more than a couple dozen dealerships even received thier first Genesis shipment in June. July will be a much more telling month.

 

[GrandPrix08]

Though it will be a tough seller from the dealers who play markup games called 'market adjustment', since I think most dealers in US now have at least 1 cars in stock, and as orders from the customers comes in, yeah, I guess July will see some bigger numbers, though I doubt it will be an incredible hot seller just like Azera's sales shows. Genesis may be a good car, I still don't think most Americans are ready to spend 35-40K on a Hyundai. Time will tell.

 

[Sal Collaziano]

Though it will be a tough seller from the dealers who play markup games called 'market adjustment', since I think most dealers in US now have at least 1 cars in stock, and as orders from the customers comes in, yeah, I guess July will see some bigger numbers, though I doubt it will be an incredible hot seller just like Azera's sales shows. Genesis may be a good car, I still don't think most Americans are ready to spend 35-40K on a Hyundai. Time will tell.

/\Our resident skeptic.
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[unknown_owner]

if the fully loaded was 35K, I'd definitely get it, but not for 40K

 

[Simonwpb]

For comparison, I looked for Lexus retail numbers. [article]

"Vehicle sales at Toyota totaled 193,234 in June, down 21.4% from 245,739 vehicles sold in June 2007. Sales of the automaker's Prius hybrid actually fell 33.7% to 11,765 vehicles, which Toyota attributed to limited availability.

In tune with curbed discretionary spending elsewhere in the market, sales at Toyota's luxury Lexus division dropped 29.8% to 20,253 vehicles."

Specific model numbers were found in another posting:

Total passenger car sales for the month at the Lexus Division dropped 16.6% to 12,942 units. The ES 350 luxury sedan sales for the month totaled 5,726 units, while the combined sales of IS entry luxury sport sedan was 4,324 units. The combined sales of LS flagship luxury sedan and GS luxury sport sedan were 1,525 units and 1,213 units, respectively.

So a Genesis sales target of 30,000 or 2,500 monthly is similar to Lexus sales of 2,738 LS/GS cars last month...

 

[Sal Collaziano]

Lexus sales are down for two reasons. #1 - because the economy is bad and people aren't buying expensive cars right now. #2 - because Lexus quality has dropped.

I think the Genesis will keep up with Lexus GS sales as long as Hyundai sticks to their marketing plan.

 

[jwaters943]

Lexus is also trailing the competition in performance in many instances. The E & S-Class have significantly better performance than their Lexus rivals. The only model that really falls short is the new C-Class, at least in non-AMG trim.

While luxury car sales are down as a whole, MB seems to be holding their own FWIW.
Source: http://www.emercedesbenz.com/Jul08/..._USA_Sales_Drop_0_1_Percent_In_June_2008.html

There has always been a certain segment of the population that believes that Lexus sells so well mainly because of their reliability and price advantage. Once those advantages shrink (and I do believe they are shrinking), many of the well-heeled luxury car buyers out there will likely go w/ a more "historic" luxury nameplace like Mercedes Benz.

 

[Sal Collaziano]

There has always been a certain segment of the population that believes that Lexus sells so well mainly because of their reliability and price advantage. Once those advantages shrink (and I do believe they are shrinking), many of the well-heeled luxury car buyers out there will likely go w/ a more "historic" luxury nameplace like Mercedes Benz.

I've been saying this for a long time now - even posting it on various Lexus forums. If Lexus doesn't start becoming more reasonable with their prices, people are going to head back to Mercedes.

 

[Simonwpb]

July sales results are in! 619 Genesis retails

July sales results below...

Hyundai Motor America today announced sales of 40,703 for the month of July, a 6.5 percent decrease over the same period last year.

“Although Accent and Elantra sales continued their upward trend with increases of 96 percent and 31 percent respectively over the same period last year, we experienced an overall slow down for the month of July,” said Dave Zuchowski, Hyundai Motor America’s vice president of national sales. “We are encouraged going forward, however, due to the fact we have recently opened a new four-cylinder engine plant in Montgomery, Alabama, allowing us to shift our engine mix for future product. We also expect greater availability of our more-fuel efficient vehicles in the months to come and the demand for our new rear-wheel drive Genesis to continue to rise.”

Model Jul-08
ACCENT 6,740
SONATA 11,409
ELANTRA 10,454
TIBURON 1,102
SANTA FE 6,868
AZERA 808
TUCSON 1,521
ENTOURAGE 482
VERACRUZ 700
GENESIS 619
TOTAL 40,703


Model Jun-08
ACCENT 6,914
SONATA 16,875
ELANTRA 14,482
TIBURON 979
SANTA FE 5,863
AZERA 1,745
TUCSON 1,964
ENTOURAGE 499
VERACRUZ 682
GENESIS 30
TOTAL 50,033

 

[Sal Collaziano]

So Hyundai has sold 649 Genesis sedans so far, huh? And we have like 10 of those owners here. Boy, do we need to get the word out about this place.

On another note, I see the Sonata and Azera took a BIG hit in July - while the Genesis started selling quite a bit... So I think the Genesis is stealing sales from the Azera and Sonata..