The new car will be recalled half a month after it is on the market! A luxury brand in China performed "crotch-pulling", and last year's sales were less than Mercedes-Benz's "fraction"
Per reporter: Dong Tianyi Per editor: Sun Lei
Genesis, which has "entered the Chinese market three times", is still "unsatisfied".
A few days ago, the reporter of "Daily Economic News" learned from the website of the State Administration for Market Regulation that Genesys Automobile Sales (Shanghai) Co., Ltd. filed a recall plan with the State Administration for Market Regulation in accordance with the requirements of the Administrative Regulations on the Recall of Defective Automobile Products and the Implementation Measures of the Administrative Regulations on the Recall of Defective Automobile Products. Effective immediately, a total of 1,602 imported Genissys G80, GV70, GV80, and pure electric GV70 and GV60 vehicles with production dates between January 13, 2021 and February 6, 2023 will be recalled.
Image source: Screenshot of the website of the State Administration for Market Regulation
According to the announcement, in the event of a low-speed collision of vehicles covered by this recall, the working time delay of the front seat belt pretensioner leads to excessive pressure in the pretensioner pipe, and the seat belt pretensioner gas generator may detach and eject debris, which is a potential safety hazard.
This is the second recall plan announced by Genesys in nearly a month. In May, Genesys announced a recall of 70 imported Genesys GV60 vehicles manufactured between August 24, 2022 and December 17, 2022. According to the recall announcement, due to manufacturing reasons, the surface stress on the surface of the rear axle half shaft of the vehicles covered by the recall is too large, which may cause the half shaft to break during the driving of the vehicle, which is a potential safety hazard.
Image source: Photo by Wang Yan, reporter
As a luxury brand under Hyundai Motor, Genesys entered the Chinese market in 2008 and 2014 under the names of "Genesis" and "Genesis", but it failed to meet sales expectations both times; In 2018, Genesis changed its name to "Genesys" to enter the Chinese market for the third time, and formally established "Genesys Automobile Sales (Shanghai) Co., Ltd." in that year, and the following year, Hyundai Motor also announced the restart of its import business in China. In 2021, Genesys used 3,281 drones to spell out the words "Hello, China" on the Bund in Shanghai, returning to the Chinese market with a high profile in a way that broke the Guinness World Record.
However, the huge "encore" ceremony did not seem to bring good luck to Genesys, and its first medium and large product lines G80 and GV80 failed to splash in the Chinese market. In October of the same year, Genesys released its third model, the G70, which was benchmarked against the BMW 3 Series, Cadillac CT5, Audi A4L, etc., but the results were still less than expected. According to the purchase data of new car compulsory insurance, the cumulative sales of Genesys in China in 2022 will only be 1457 units, of which the sales of G70, G80 and GV80 models are 226, 832 and 399 respectively.
During the same period, Mercedes-Benz and BMW sold about 751,700 and 792,000 units in China. Volvo and Cadillac sold approximately 162,000 and 215,000 units, respectively. This means that Genesys, which is striving to show its luxury car positioning in the Chinese market, will still sell less than a fraction of the above-mentioned luxury brands in China in 2022.
Image source: Courtesy of the company
In fact, Genesys' "cold" is only a microcosm of the development momentum of Korean brands in China. According to data from the China Association of Automobile Manufacturers, from 2019 to 2021, the market share of Chinese brand passenger cars increased from 39.2% to 44.4%, while the market share of Korean brands in China decreased from 4.7% to 2.4%. In 2022, the retail sales of Korean cars in China will be only 351,000 units, a year-on-year decrease of 35%, making it the largest decline among individual car series in various countries. In January ~ April this year, the market share of Korean cars has fallen to 1.8%.
Some people believe that the reason why Korean cars stall in China is, on the one hand, that Korean cars have previously focused on low-priced product strategies in China, although they have achieved good sales in the early market, but lack of mid-to-high-end models, and the current recognition of Korean brands by Chinese consumers is low; On the other hand, under the wave of electrification, the electrification process of Korean automakers lags behind other brands. In 2021, Hyundai Motor officially announced its medium- to long-term electrification strategy and financial targets.
In this regard, Genesys is also actively catering to the electrification transition. In November last year, Genesys officially released its brand vision: from 2025, all new Genesys models will be pure electric models with fuel cell or battery technology; It plans to become a 100% zero-emission car brand by 2030, launch eight new pure electric models, and expect global annual sales to reach 400,000 units, and achieve carbon neutrality by 2035.
During the 2021 Shanghai Auto Show, He Ruisi, CEO of Genesys Automobile Sales (Shanghai) Co., Ltd., said in an interview with reporters that the new entrant Genesys did not regard sales, ranking and market share as the most important goals, but focused on brand building. Now, two years later, Genesys still doesn't seem to have found a way to the mainstream stage. In the face of the increasingly "involuted" domestic car market, the time left for Genesys is accelerating.
Daily economic news