[Edaily Reporter LEE YUNHWA ] Genesis, HyundaiMotor’s luxury car brand, has begun full-scale preparations with the goal of launching in the Indian market next year. To reduce the tariff burden, the company is considering a plan to locally assemble approximately 1,000 units annually in the early stages.
According to industry sources on the 12th, HyundaiMotor is reportedly considering local production using the Semi Knocked Down (SKD) method, with the goal of officially launching the Genesis brand in India next year. Under this model, key components would be supplied from South Korea and final assembly would take place in India, with initial production volume estimated at around 1,000 units per year.
HyundaiMotor announced plans for a 2027 launch in India at its India subsidiary’s Investor Day in October 2025 and reaffirmed this plan earlier this year.
HyundaiMotor is considering the SKD method for the launch of Genesis in India to leverage the production quality advantages of its domestic plants while alleviating the burden of local tariffs.
India imposes a high tariff of 70% on new vehicles (excluding electric vehicles) imported as fully assembled units, but this tariff is reduced by half (to 35%) when imported in semi-knocked-down (SKD) form. Given that mass demand has not yet been secured, SKD exports are the most ideal way to ensure price competitiveness in the local market.
It is reported that the company expects local demand to be around 1,000 units per year following the Genesis launch. While India’s annual passenger car sales totaled approximately 4.49 million units last year—ranking third globally—its premium car market remains relatively small. Last year, the three German premium automakers—Mercedes-Benz, BMW, and Audi—sold approximately 40,000 units in India.
Genesis’s entry into India is aimed at tapping into the local market’s potential and expanding its global footprint—Genesis’s core business—which has been experiencing stagnant growth. Genesis’s global sales from January through September this year totaled 143,102 units, a 12.0% decrease compared to the same period last year. This was largely due to domestic sales, which fell 29.4% year-over-year to 68,683 units through October. For Genesis, expanding its sales base in the global market remains a key priority, separate from the recovery of domestic sales.
In June of this year, HyundaiMotor announced plans to expand Genesis’s European sales network from three countries last year to more than 50 locations across 11 countries by 2027. Through this, the company aims to increase its European sales—which stood at 2,476 units last year—to more than 12,000 units by 2030.
However, for Genesis to establish a firm foothold in the local market, building brand awareness and establishing a sales and service infrastructure remain key challenges. Given that established premium brands such as Mercedes-Benz, BMW, and Audi are already firmly entrenched in the market, the key question is how effectively Genesis, as a latecomer, can communicate its differentiated product features and services.
An automotive industry official stated, “Whether the expansion of the European sales network and diversification of the product lineup will translate into actual sales growth, and whether Genesis can secure sufficient demand in India to absorb its initial production volume, will likely determine its future success.”
