Hyundai Motor Group is reportedly developing hybrid versions of its Genesis luxury models, including a Genesis Hybrid Suv, to appeal to consumers who are still hesitant about fully electric vehicles. Industry sources indicated on Tuesday that the South Korean automaker is expected to introduce these hybrid options starting next year.
Hyundai, along with its subsidiary Kia Corp., began working on hybrid powertrains specifically for the Genesis lineup late last year. The first Genesis hybrid vehicle is anticipated to debut next year, featuring a 2.5-liter engine, which is notably larger than the 1.6-liter engine found in Kia’s Carnival hybrid minivan.
It is widely speculated that popular Genesis models like the G80 sedan and, significantly, the GV70 SUV will be among the first to receive hybrid powertrains. Dealers in the United States, a key market for Genesis, have reportedly urged Hyundai to develop plug-in hybrid versions for the brand. However, Hyundai has not yet confirmed whether it will pursue plug-in hybrid models for Genesis, which would incorporate larger batteries similar to those in EVs.
Currently, the Genesis lineup includes the G70, G80, and G90 sedans, as well as the GV60, GV70, and GV80 SUVs. Initially, Hyundai planned to transition all new Genesis models launched from 2025 onwards to all-electric powertrains. However, this strategy has been adjusted in response to a slowdown in the electric vehicle market that began in the latter half of 2023. Global automakers such as General Motors, Ford, Stellantis, and Volkswagen have also scaled back their EV investments and development timelines.
Genesis currently offers three electric models: the electrified G80 and GV70, which are based on their gasoline-powered counterparts, and the GV60, built on Hyundai’s dedicated EV platform, E-GMP. In 2023, Genesis sold 225,189 vehicles, a slight increase from 215,128 units the previous year. However, sales of its all-electric models slightly decreased to 18,759 units, compared to 18,846 units in 2023, highlighting the cooling trend in EV demand.
Hyundai and Kia Expand Hybrid Offerings
Beyond Genesis, Hyundai and Kia are also expanding their hybrid offerings across their main model ranges. Hybrid variants are planned for flagship models such as the Hyundai Palisade SUV (with a 2.5-liter engine), a redesigned Hyundai Santa Fe SUV (1.6-liter), and the Hyundai Staria minivan, all expected this year. Kia is also set to launch a hybrid version of the third-generation Seltos compact SUV next year, further demonstrating the group’s commitment to hybrid technology.
Hybrid vehicles are gaining popularity due to their improved fuel efficiency and lower emissions compared to traditional combustion engine cars. For automakers, hybrids can also offer better profit margins compared to EVs, as they typically require less substantial incentives to drive sales. This strategic shift towards hybrids comes as the global automotive market adjusts to a more moderate pace of EV adoption.
Toyota, for example, while being a leader in hybrid technology but lagging in full EV transition, sold 3.4 million hybrid vehicles, a 31% increase year-over-year. Honda also recently unveiled a new Civic hybrid model, slated for US release this year, indicating a broader industry trend toward hybrid solutions.
Hyundai has already introduced hybrid versions of models like the Sonata, Grandeur, Kona, Tucson, and Santa Fe. Kia’s hybrid lineup includes the K5, K8, Niro, Sportage, Sorento, and Carnival. According to an industry expert, “As the transition to electric vehicles is unexpectedly delayed, hybrid cars have taken the lead in the global car market. The key to survival now is launching hybrid cars with a competitive lineup.”
In conclusion, the move by Genesis to introduce a genesis hybrid SUV and other hybrid models signifies a strategic pivot in response to the evolving automotive market. As EV adoption faces headwinds, hybrid technology is becoming increasingly important for automakers to bridge the gap and meet diverse consumer demands while still offering more environmentally friendly options. This positions Genesis and Hyundai to maintain sales momentum and competitiveness in a rapidly changing industry landscape.
