Are Genesis’s New SUVs Hurting Sales of the GV80?
Genesis is one of the newer luxury automakers, the company is the luxury arm of Hyundai. Just like with its parent company, Genesis makes a lot of great cars, and the GV80 is an example of that as it’s essentially a luxury version of the Hyundai Palisade.
However, Genesis has added more cars to its lineup recently, and since then, the GV80’s sales have declined. Here’s a look at why that may be happening.
This is what Genesis’ sales looked like in 2022
According to GoodCarBadCar, Genesis had three SUVs in the American market in 2022, and the best-selling one was the GV70. It sold just over 19,000 units in 2022, and this represents positive gains across the board. Last year, the South Korean luxury automaker only sold just under 11,000 units of the SUV, which means that sales for the GV70 rose by over 78%.
The GV80, meanwhile, was in the middle. It sold a total of around 17,500 units for the year, but that’s compared to the over 20,000 units that the company sold last year. This means that the GV80 had a drop in sales of about 14%. The last SUV in Genesis’ lineup is the GV60, and it’s a brand-new electric compact SUV that debuted in the 2023 model year.
Since the GV60 was such a new EV, it was initially only available in a handful of EV-loving states, such as California and New York. The South Korean luxury automaker has expanded the rollout of the GV60, but it’s still early. As such, Genesis only sold 1,590 units of the EV in 2022.
Are these new Genesis SUVs hurting the GV80’s sales?
Just like the GV60, the GV70 is a relatively new car as it only debuted in the American market in the 2022 model year. The GV80 is still fresh too, as it debuted in the 2021 model year. That said, automakers tend to be good at differentiating their cars from one another, so it’s unlikely that the GV60 and GV70 have affected the GV80’s sales too much.
The GV80 was Genesis’ first SUV on the market, and it competes in the midsize luxury SUV segment. It’s possible that some eco-friendly car shoppers chose the fully-electric GV60 over the larger Genesis option.
The GV70 is a compact luxury SUV, so it’s competing in a different segment than the GV80. That said, compact SUVs are popular, and it’s possible that some shoppers realized they didn’t need a midsize SUV and as such, chose the smaller GV70. While these are possible explanations, there are other ones that also make a lot of sense.
There are more likely reasons for why the GV80’s sales have declined
The supply chain crisis has affected every automaker, including Genesis, and this has led to an inflation in prices. Luxury SUVs normally cost a lot of money, but these issues mean that their prices have increased. The 2023 GV80 starts at about $56,000, and that’s a steep increase from prior model years. The 2022 version started at $51,000, while the 2021 version debuted at under $50,000.
Many luxury car shoppers don’t care as much about the price, but some do. These price increases likely turned some shoppers away from the car. On top of that, it’s normal for new cars like the GV80 to see a drop in sales in its first few model years. This may happen due to marketing reasons, as it takes time for shoppers to even be aware of a new car.