May 7 (Asia Today) — Genesis is shifting its electrification strategy toward hybrids as domestic sales slow and consumer demand grows for fuel-efficient alternatives to conventional vehicles and electric vehicles.

The Hyundai Motor luxury brand plans to introduce hybrid powertrains to major models, starting with the GV80 in the second half of this year, followed by the G80 and GV70, industry officials said Thursday.

The move marks a shift from Genesis’ previous two-track strategy centered on internal combustion models and electric vehicles. The brand is now moving toward a broader electrification lineup that includes hybrids and extended-range electric vehicles.

Hybrid demand is rising quickly in South Korea. Hybrids accounted for a record 30.3% of domestic sales by the country’s five major automakers last year. Hybrid sales rose from 149,489 vehicles in 2021 to 415,921 last year, nearly tripling over the period.

Genesis, meanwhile, sold 32,927 vehicles in South Korea from January through April, down 24.9% from 41,143 vehicles a year earlier.

Industry analysts said Genesis was late in responding to hybrid demand during the transition to electrified vehicles. The brand’s domestic sales have declined steadily since peaking in 2021.

Genesis is seeking a rebound with a next-generation hybrid system. The company is expected to emphasize rear-wheel-drive luxury hybrids, a segment where it will compete more directly with premium brands such as BMW and Mercedes-Benz.

Hyundai Motor President José Muñoz said at the company’s CEO Investor Day in New York last year that Hyundai would introduce its first rear-wheel-drive luxury hybrid model this year.

The slower-than-expected growth of the EV market is also driving the strategy shift. Hybrids are increasingly viewed as a practical alternative because they improve fuel efficiency while reducing concerns over charging infrastructure.

Genesis is also preparing an extended-range electric vehicle based on the GV70. The vehicle would be driven by an electric motor, while its internal combustion engine would be used only to charge the battery. It is expected to travel more than 1,000 kilometers, or about 621 miles, on a full charge and tank of fuel.

“As the pace of the EV transition becomes slower than expected, hybrid demand is rising rapidly,” an industry official said. “If Genesis expands into hybrids and EREVs, competition with imported premium brands will become even fiercer.”

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260507010001519