The retail price of Hyundai Motor Co.’s new Genesis luxury sedan will be higher than that of BMW AG’s 3-Series in the United States, an executive of the South Korean carmaker said Monday. Last week, Hyundai Motor launched the Genesis in South Korea, its first foray in the high-end segment to compete with BMW’s 5-Series, Daimler AG’s Mercedes-Benz E-Class and Toyota Motor Corp.’s Lexus GS.
Hyundai Motor hasn’t yet set a price range for the new model, which will be available for sale in the U.S. in June.
In South Korea, the Genesis is selling at a price of between 40.5 million won (US$43,150) and 53.8 million won, depending on accessories and engine types.
“The prices will be set around April, but they will be higher than those of BMW’s 3-Series,” said Lee Hyun-soon, president of Hyundai Motor’s R&D division, on the sidelines of an auto industry fair here.
The Genesis with a 4.6-liter engine will retail at a price higher than that of BMW’s 5-Series, Lee said.
The Genesis is Hyundai Motor’s first luxury model, aimed at shaking off its image as a producer of cheap first cars.
Launching the new model in South Korea, Hyundai Motor said it expects to sell 55,000 of the vehicles this year, 35,000 at home and 20,000 overseas in the U.S.
Some analysts, however, remain skeptical over Hyundai Motor’s move into the luxury market, citing an expected decline in U.S. auto sales this year because of sluggish demand on the back of higher oil prices and rising defaults on subprime mortgage loans.
