Hyundai Motor, Kia, and Genesis are rapidly closing the gap with traditional global luxury brands, according to a recent report.
On September 16, Hyundai Group announced that the U.S. automotive publication CarBuzz reported that Hyundai, Kia, and Genesis are enhancing their product competitiveness and shaking up the existing automotive market.
CarBuzz highlighted its experience test-driving the Hyundai Palisade hybrid, stating, "The smooth ride and quietness of the Palisade are hard to distinguish from many luxury SUVs priced over $100,000." The publication emphasized that the vehicle combines design, comfort, fuel efficiency, and price competitiveness.
CarBuzz analyzed data from J.D. Power's recent five-year Automotive Performance, Execution and Layout (APEAL) study, noting that the satisfaction gap between Hyundai, Kia, and Genesis and existing luxury brands is narrowing quickly.
In this year's survey, Hyundai scored 858 points, just 12 points behind Lexus and 18 points behind Mercedes-Benz. Kia scored 857 points, showing a 6-point difference with Volvo. Genesis has recorded scores between 869 and 886 over the past five years.
CarBuzz remarked that Genesis has consistently outperformed Mercedes-Benz, Lexus, Audi, Volvo, Acura, and Infiniti in recent years, stating, "Genesis is no longer a follower but has firmly established itself among the top brands in the luxury market."
The report also noted Hyundai Group's manufacturing competitiveness. CarBuzz pointed out that investments in AI-based robotics and production automation, particularly through Boston Dynamics, along with in-house steel production capabilities, could lower production costs and enhance product competitiveness.
In the first half of this year, Hyundai and Kia sold 920,383 vehicles in the U.S., a 3% increase from the same period last year. Notably, hybrid sales surged by 65.5% to 225,321 units.
Despite a slowdown in electric vehicle demand, CarBuzz assessed that Hyundai Group is responding to market changes with a product lineup that includes hybrids, electric vehicles, and internal combustion engine cars.
Meanwhile, Hyundai announced at its recent CEO Investor Day 2026 that it plans to add 500,000 units to its North American production capacity by 2030 and increase its local parts procurement rate to over 80%. Hyundai Group plans to invest a total of $26 billion in the U.S. from 2025 to 2028, including this initiative.
* This article has been translated by AI.
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