Brand on the brink of a radical shake-up
Electric vehicles may be on the rise, but hybrid sales are still booming - so much so that Genesis is on the brink of a radical shake-up of its future strategy.
The Hyundai-owned luxury brand made no secret that its initial long-term strategy was to transition directly from internal combustion engines (ICE) to all-electric vehicles (EVs), skipping over hybrids and plug-in hybrids.
But with the automotive landscape dramatically changing in recent years, with EV sales growing slower than expected until the US-Iran War began and drove a surge in EVs, Genesis has abandoned its 'no hybrid' stance.
The brand's first hybrid model is due to be revealed later in 2026 and should be on sale in Australia by the end of 2027. Genesis hasn't announced which model, but the current flagship GV80 SUV seems like the most likely candidate.
Head of Genesis Motors Australia, Justin Douglass, explained the reason for the change is simple - customer demand.
"I think when you look at the luxury market, and you look at what mix of sales is coming from some form of hybrid, it's nearly one in two," he told CarsGuide. "So right now, we play in a really small part of the market, and it's no secret our mix is heavily skewed towards ICE. So I think having hybrid come to market where all of a sudden you've got then half of the market more accessible to you that's only gonna be beneficial to the brand."
Genesis GV80
While some other luxury brands are remaining steadfast in the transition to an all-electric future, most notably Jaguar, Genesis is joining Porsche and adapting to meet the changing market demands.
This is less-challenging for Genesis than potentially it is for other brands, as it can draw on the resources from Hyundai to rapidly adapt.
"I think it's fantastic that we're able to give the customers choice and meet the needs of the customers," said Douglass. "Yeah, you're right, at some point we were going to be an all-electric brand. Whereas there has been a pivot to that, and obviously there's been talk about hybrids joining our drivetrain mix, which I guess, demonstrates how lucky we are to be part of Hyundai Motor Group and have access to those different drivetrains. And if they could be here now, of course we'd love it. You'd take advantage of the opportunity that's there, but at the end of the day, it's important that we get it right. And I'm confident that once it does come to market, it's going to be a great opportunity for us, and it'll be at the right time for the brand."
Genesis GV80
While nothing has been confirmed, the GV80 hybrid is likely to use the 'TMED-II' hybrid system that debuted in the latest generation Hyundai Palisade.
This powertrain combines a new 2.5-litre turbocharged petrol engine with an all-new hybrid system that integrates two electric motors, instead of just one. In simple terms, the two motors are mounted between the engine and the transmission and one motor is dedicated to creating power and the second one to drive the wheels. In the Palisade it makes 245kW of power and 460Nm of torque, while using 6.8L/100km - a good return for such a big SUV.
However, it's likely to only be the beginning for hybrid Genesis models, with both it and Hyundai making little secret that development of range extended electric vehicles (REEV) is advancing at a rapid pace.
Tim Rodgers, Product Planning and Development Manager for Genesis and Hyundai Australia, said both arms of the company would look to introduce the latest hybrid technology that benefits from its EV knowledge.
"I think from a R&D side as well, if you consider ICE and EV on a spectrum, a lot of hybridisation is coming from the ICE end, right?" Rodgers said. "And that dictates a lot of the development. But actually by having so much electrification in our portfolio and bringing in hybrid from an EV end of the spectrum it actually presents different opportunities and technological breakthroughs, if that makes sense? So the result will be a portfolio of different hybrids. We're going to be differentiated because of that, which is good for us."
Genesis GV70 Electrified
While no official details have been announced, Genesis is expected to offer hybrid variants of the GV70 and GV80 SUVs as well as possibly the G80 sedan within the next two years.
