Hyundai to release Genesis hybrid variants in 2025

Hyundai Motor Co. is expected to release hybrid cars under its premium brand Genesis next year to attract drivers hesitant to switch to all-electric vehicles, according to automotive industry sources on Tuesday.

Hyundai Motor Group, encompassing Kia Corp., embarked on the development of hybrid car engines and systems for Genesis models at the end of last year.

It is said to be launching the first Genesis hybrid variant next year with a 2.5-liter engine, bigger than the 1.6-liter engine installed in Kia's Carnival van hybrid.

Hybrid engines will likely be first equipped into popular Genesis models such as the G80 sedan and the GV70 SUV.

Genesis dealerships in the US have asked Hyundai to roll out a plug-in Genesis hybrid, the sources said. But Hyundai has not determined yet whether to develop plug-in hybrid models under the Genesis brand, powered by batteries like all-electric vehicles.

Genesis comprises the G70, G80 and G90 sedans, as well as the GV60, GV70 and GV80 sports utility vehicles. Hyundai originally planned to transform all Genesis vehicles to be released from 2025 into EVs.

However, it modified this strategy in the face of the cooling EV market since the second half of last year. Global carmakers such as General Motors, Ford, Stellantis and Volkswagen have pushed back investments in, or developments of EVs.

Currently, Genesis has three EV variants. The G80 and GV70 are based on combustion engine models. The GV60 is manufactured on Hyundai’s dedicated EV platform E-GMP.

Last year, Genesis sold 225,189 units, up slightly from the previous year's 215,128 units. But its all-electric vehicle sales edged down to 18,759 units, versus 18,846 units in 2023.

HYBRID VARIANTS OF OTHER MODELS

Hyundai and Kia will also roll out hybrid variants for flagship models such as the Palisade SUV with a 2.5-liter engine, a 1.6-liter revamped Santa Fe SUV and the Staria minivan this year.

Kia will launch a hybrid variant of the third-generation Seltos compact SUV next year.

Hybrid cars accounted for 10.6% of Hyundai's global sales in the fourth quarter of last year, up 7.1% from the same period the year previous. In comparison, the proportion of EVs dropped to 5.3%, versus 5.7% a year earlier. 

Kia reported a 51% surge in hybrid car sales in the US last month from the year prior, with Hyundai Motor’s plug-in hybrid car sales up 41%.

Hybrid cars boast higher mileage and lower emissions than combustion engine cars. For carmakers, hybrids boosted sales margins more than other types of vehicles because they do not need to give hefty subsidies to promote their sales.

Toyota, lagging behind other carmakers in the transition toward EVs, sold 3.4 million hybrid cars, up 31% from a year earlier.

Last month Honda unveiled the new Civic hybrid. It will ship the full hybrid hatchback to the US this year.

Hyundai has so far launched hybrid variants of the Sonata, Grandeur, Kona, Tucson and Santa Fe models. Kia has released hybrid versions of the K5, K8, Niro, Sportage, Sorento and Carnival models.

“As the transition to electric vehicles is unexpectedly delayed, hybrid cars have taken the lead in the global car market,” said an automotive industry official.

“Now the key to survival becomes when they will launch hybrid cars with a competitive lineup,” he added.

Write to Jae-Fu Kim and Nan-Sae Bin at hu@hankyung.com
 

Yeonhee Kim edited this article.