Hyundai launching Lexus-like luxury brand... in China

[Sal Collaziano]

Filed under: China, Hyundai


Speculation has been mounting for some time now that Hyundai could spin off a luxury division, and those rumors have finally been confirmed. But while Toyota, Nissan and Honda initially targeted its luxury brands (Lexus, Infiniti and Acura, respectively) at the American market, emerging reports suggest that Hyundai's premium marque will make its debut in China.
Hyundai is currently the second most popular import in the rapidly-growing Chinese auto market, trailing only Toyota for sales in the country. With five different models, Hyundai sold 24,000 vehicles in China last year, and manufactures more in joint ventures locally. Eying the emerging luxury car market in China - Lexus sales increased 160 percent last year and was projected at 80% growth this year - Hyundai has confirmed it is preparing to launch its own premium brand there. However, while it would seem that the establishment of a luxury badge would allow the mainstream Hyundais to move downmarket, the Korean automaker is also attempting to take its standard models upmarket along with it. One of its most popular models in China, the Matrix minivan, is being withdrawn as Hyundai tries to increase its brand image as a premium automaker. In its place, Hyundai is bringing in the new Santa Fe, Azera, a larger, more expensive Coupe and a new premium crossover.
The luxury division - complete with its own name and badge - is expected to be officially launched in 2010. Whether the new brand will make the trip around the world and land on American shores remains to be seen, but we certainly wouldn't discount the possibility.
[Source: Gasgoo via Motive]

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[Sal Collaziano]

There's a lot of money to be made in China and it looks like Hyundai is right there earning it. This will give them more money for research and development - which will make them more competitive in the U.S.

 

[GrandPrix08]

Certainly one thing that Hyundai needs to do in US and Canada. REMOVE the Hyundai badge and create a luxury brand. Though Hyundai and Kia isn't that bad as they were before, there are still many, many people who sees them as nothing more than a cheap alternative to the big boys. I know it will cost them a fortune to set up a new dealers for the new luxury brand, and they may have to raise the price of the car in order to make for their $ lose, and they WILL experience a very slow first year sale, but that's one thing that they really should do in order to suceed on a long run.

I personally doubt there will be much buyers for a 30-40K Hyundai sedan. At least, NOT YET. As long as there is a flying H Hyundai logo. Also, it's about time that they change their logo for a change. It's dated and it's not a good design to begin with. It's not as established, nor has reputations like the logos that Ford, GM uses. They need a new logo that will really symbolize the Korea's no.1 largest auto maker that has history.

That's how I feel.

 

[Sal Collaziano]

Right. The dealerships have a lot to do with what makes a brand luxurious. The service after the sale, the red carpet treatment, can't be ignored.. People with money, those who buy luxury vehicles, want to go into a dealership with other people who make lots of money. That's just the way it is.

Has Hyundai ALWAYS had the same logo? If so, maybe they feel it has history in itself...

 

[GrandPrix08]

Actually, No. Hyundai used the plain, HD as their logo from their first model(I belive it was Pony in the early 70s, which I belive was their very first car designed for Korea), and they changed it to the current one from the late 80's I believe. I don't think they affixed any logo on their first US bound model(Excel), it was few years later that they started putting in the modified Honda logo(that's how I look as), the flying H.

 

[Sal Collaziano]

Actually, No. Hyundai used the plain, HD as their logo from their first model(I belive it was Pony in the early 70s, which I belive was their very first car designed for Korea), and they changed it to the current one from the late 80's I believe. I don't think they affixed any logo on their first US bound model(Excel), it was few years later that they started putting in the modified Honda logo(that's how I look as), the flying H.

Thank you for the history lesson. I didn't know any of that..

 

[GrandPrix08]

I actually prefer their old, plain HD logo better than the current flying H. While it was simpler, and more plain, it was unique in itself, and does not look like a bad modification of Honda's square H.

 

[Sal Collaziano]

What did the D stand for in HD?

 

[GrandPrix08]

I think it just stands for Hyun Dai. I am not sure about that.

 

[gentau]

Actually, No. Hyundai used the plain, HD as their logo from their first model(I belive it was Pony in the early 70s, which I belive was their very first car designed for Korea), and they changed it to the current one from the late 80's I believe. I don't think they affixed any logo on their first US bound model(Excel), it was few years later that they started putting in the modified Honda logo(that's how I look as), the flying H.

Original Hyundai logo on 1974 Pony Coupe by ItalDesign

Original Hyundai logo on 1986 Pony steering wheel

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[Sal Collaziano]

Thanks for the pictures, John! The Pony is an interesting looking car.. It sorta reminds me of a DeLorean in the front..

 

[GrandPrix08]

It was actually rumored to be the rejected Delorean design that Italdesign did that later sold to Hyundai. Not sure if it was true, but that is the rumor.

 

[Sal Collaziano]

It was actually rumored to be the rejected Delorean design that Italdesign did that later sold to Hyundai. Not sure if it was true, but that is the rumor.

Well that would certainly make sense then!

 

[gopack504]

Certainly one thing that Hyundai needs to do in US and Canada. REMOVE the Hyundai badge and create a luxury brand. Though Hyundai and Kia isn't that bad as they were before, there are still many, many people who sees them as nothing more than a cheap alternative to the big boys. I know it will cost them a fortune to set up a new dealers for the new luxury brand, and they may have to raise the price of the car in order to make for their $ lose, and they WILL experience a very slow first year sale, but that's one thing that they really should do in order to suceed on a long run.

I personally doubt there will be much buyers for a 30-40K Hyundai sedan. At least, NOT YET. As long as there is a flying H Hyundai logo. Also, it's about time that they change their logo for a change. It's dated and it's not a good design to begin with. It's not as established, nor has reputations like the logos that Ford, GM uses. They need a new logo that will really symbolize the Korea's no.1 largest auto maker that has history.

That's how I feel.

Hi! I'm new here. I definitely AGREE that Hyundai would be smart to create a luxury brand. If they are trying to create a luxury brand like Lexus they need to use the new logo. I think the Hyundai name has a stigma to it, and a new logo would help remove that stigma. It's like comparing whether you shop at K-mart or Nordstrom's. I will admit I have never considered buying a Hyundai until I saw the Genesis. I think Hyundai is starting to make nicer looking cars. I used to think all their cars were ugly. I stopped at a Hyundai dealership a couple month ago and the sales rep told me Hyundai has a goal of becoming one of the better car brands. He also told me that Hyundai is owned by the same company that owns Kia. So, perhaps the goal is for Kia to be like Toyota, and Jyundai like Lexus?

Rumor has it they are going to use a winged logo for the Genesis.

 

[GrandPrix08]

First of all, welcome aboard.

Well, couple things here. Hyundai isn't owned by anyone. It's the automobile making giant who also owns Kia(they bought Kia on a whole who was almost bankrupt several years back)

Also, the Genesis logo you have posted is only for Korean market, it won't be comming to North America, but Hyundai logo instead. Even though the rumor has it that, they changed their mind so the car won't have any logos on.

 

[Sal Collaziano]

Welcome aboard, GoPack! Thank you for signing up.. Hopefully the luxury brand does well enough in China that it makes it here to the U.S. I do believe they need a separate brand to make the kind of impact they want to make.

I agree that they're probably thinking Kia will be the Toyota competitor as Hyundai goes upmarket - but I don't think that strategy is going to work. At least not anytime SOON. However, it may be their way of thinking that if they start a separate brand, they'll have to charge more for their vehicles (to pay for the dealerships) - and lose their affordable appeal. There's a lot to think about either way they go...

 

[gopack504]

First of all, welcome aboard.

Well, couple things here. Hyundai isn't owned by anyone. It's the automobile making giant who also owns Kia(they bought Kia on a whole who was almost bankrupt several years back)

Also, the Genesis logo you have posted is only for Korean market, it won't be comming to North America, but Hyundai logo instead. Even though the rumor has it that, they changed their mind so the car won't have any logos on.

It might be good to go without logos, although I do like the winged logo. The reason it would be good to go without a logo is because people will walk up to the car as say "I like that car!", and then ask "Who makes it." When they find out it's Hyundai people will be like "Really!" It's purely phsycological, but the surprise will get people to think twice about buying a Lexus that cost $10-15k more. I personally would pay a lot less for just as nice of a car, since a car after all is a depreciating asset.

 

[Sal Collaziano]

It might be good to go without logos, although I do like the winged logo. The reason it would be good to go without a logo is because people will walk up to the car as say "I like that car!", and then ask "Who makes it." When they find out it's Hyundai people will be like "Really!" It's purely phsycological, but the surprise will get people to think twice about buying a Lexus that cost $10-15k more. I personally would pay a lot less for just as nice of a car, since a car after all is a depreciating asset.

Good points.. I think you'll see at least a few Genesis' running around with the Genesis badge. Think aftermarket. I wonder how much it would cost to buy the badge from Hyundai...

 

[GrandPrix08]

Yeap, you can even see many people change the Tiburon badge to a Korean market name called Tuscany and its T logo. I see no reason to spend money on a logo, but many people do that.

 

[Sal Collaziano]

Yeap, you can even see many people change the Tiburon badge to a Korean market name called Tuscany and its T logo. I see no reason to spend money on a logo, but many people do that.

I do see that a lot around here. I used to wonder what that "T" was all about. And that's why people do it. To make people wonder.. I see a lot of European front license plates around here too (on European cars like BMW, for example). It's just done to give a unique personal touch.