Interior view of a Genesis showroom in the U.S. (Image provided by Genesis)
SEOUL, March 17 (Korea Bizwire) — Hyundai Motor’s luxury brand Genesis is seeing unprecedented success in the U.S. market, where it accounted for nearly one-third of global sales last year. However, potential tariff barriers under a new Trump administration pose a significant challenge to sustaining this growth.
According to Hyundai’s latest Investor Relations (IR) report, Genesis sold 229,532 vehicles worldwide in 2024, with 75,003 units (32.7%) sold in the U.S.—the highest share of any market. It marks the first time Genesis has surpassed 70,000 annual sales in the U.S., where it launched in 2016.
Genesis has experienced rapid growth in the U.S., with sales figures climbing steadily:
- 2020: 16,384 units (12.4% of global sales)
- 2021: 49,621 units (24.6%)
- 2022: 56,410 units (26.2%)
- 2023: 69,175 units (30.7%)
- 2024: 75,003 units (32.7%)
With momentum continuing into 2025—sales in January and February both set monthly records—analysts predict that Genesis could top 80,000 U.S. sales this year.
Hyundai Motor Group announced on March 14 that a total of 12 models were recognized in the crash test ratings released by the U.S. Insurance Institute for Highway Safety (IIHS), with 11 models earning the “Top Safety Pick+” rating and one model receiving the “Top Safety Pick” rating. The photo shows the Genesis GV80. (Image courtesy of Hyundai Motor)
Brand Strategy Drives Expansion
Genesis’s dedicated showrooms in the U.S. have played a critical role in brand differentiation. According to Automotive News, the number of exclusive Genesis dealerships jumped from 11 in early 2024 to 60 as of January 2025.
The company has also focused on operational independence from Hyundai. Last year, Claudia Marquez, then-Chief Operating Officer of Genesis North America, stated, “Genesis initially relied heavily on Hyundai’s support, but we are now fully operating as a standalone brand.”
Hyundai’s latest business report further reinforced the brand’s rapid ascent, stating, “Genesis has surpassed 300,000 cumulative sales in the U.S. within eight years, making it the fastest-growing luxury car brand.”
On November 21, 2024 (local time), the Genesis brand unveiled the facelifted GV70 and the electrified facelifted GV70 for the North American market at the 2024 Los Angeles Auto Show, held at the Los Angeles Convention Center. The photo shows the Genesis exhibit at the 2024 LA Auto Show. (Image provided by Hyundai Motor)
U.S. Tariffs and Production Challenges
Despite its success, Genesis faces rising uncertainty as the Trump administration considers new tariff policies. Over half of Genesis vehicles sold in the U.S. are manufactured at Hyundai’s Ulsan plant in South Korea, with only 24,000 units produced domestically at Hyundai’s Alabama factory (HMMA) in 2024.
To mitigate tariff risks, Hyundai may increase local production, but this would require negotiations with labor unions in South Korea. The company’s labor agreement stipulates that any production shift to overseas factories must be reviewed and approved by a joint labor-management committee.
A precedent was set in 2021, when Hyundai and its union restructured production by relocating some Sonata and Elantra production to Korea while shifting part of the Tucson production to the U.S.
As Genesis continues to expand in the luxury market, its ability to navigate potential trade restrictions and production adjustments will be crucial in maintaining its upward trajectory in the U.S. automotive industry.
Kevin Lee (kevinlee@koreabizwire.com)
