Genesis is preparing to launch a high-performance sub-brand, Magma, across its entire model range—both combustion and electric. This move marks a significant evolution for the luxury marque, which asserts it has rapidly established itself in the market.
A Decade of Rapid Growth
Genesis claims to have achieved in 10 years what other luxury brands take decades to accomplish. The company has already sold nearly 1.5 million vehicles globally, exceeding the initial sales milestones of established competitors like Tesla and Lexus. Annual global sales currently stand at around 225,000 units, with a target of 350,000 by 2035.
However, this success is concentrated in South Korea, where domestic support drives over two-thirds of Genesis’ sales. Expansion in Europe, which started in 2021, remains slow, with only around 1,000 cars sold in the UK last year and 5,000 total across the region.
Strategic Shifts
Genesis has adapted to market conditions, abandoning original plans for an EV-only lineup due to slowing growth in electric vehicle sales. The brand also shifted from an online-only sales model to include dealerships. Despite these adjustments, Genesis executives remain optimistic, aiming for a 650% increase in European sales within five years through a revamped strategy, new products, and improved distribution.
Magma: A New Approach to Performance
The Magma sub-brand is central to this European expansion, but Genesis distinguishes it from competitors like Mercedes-AMG, Audi Sport, and BMW M. The company emphasizes that a successful brand must offer luxury, sportiness, and coolness to appeal to a broader audience.
“We are a young brand, and we have to appeal to customers,” said Genesis executive Luc Donckerwolke. “If you are in an environment where people can choose between different brands, you have to have all the facets of the brand.”
Genesis believes that earning credibility through performance is essential before launching a high-performance division. The Magma launch is intended to solidify this position, challenging established players in the luxury performance segment.
The introduction of Magma represents a pivotal moment for Genesis, signaling its ambition to compete directly with the industry’s leading performance brands. The brand’s rapid growth, combined with its strategic adaptability, positions it as a contender in the evolving luxury automotive landscape.
