Genesis Pauses U.S. Electrification Strategy Amid 77% Drop in EV Sales

Hyundai Motor Company has paused its electrification strategy for Genesis in the United States. Following a significant drop in electric vehicle (EV) sales due to a restructuring of its EV lineup and declining local demand, the company is lowering prices to restore its sales base. While internal combustion engine vehicles continue to drive growth, the upcoming new models may provide an opportunity for recovery.

According to data from Cox Automotive's Kelley Blue Book (KBB) on August 31, Genesis sold only 560 EVs in the U.S. market during the first half of this year, a staggering 77.1% decrease from 2,450 units sold during the same period last year.

Sales figures for individual models also saw sharp declines. The GV60 sold 485 units in the first half of this year, less than half of last year's 1,192 units. The GV70 electrified model plummeted from 1,181 units to just 71, a 94% drop, while the G80 electrified model, which has been discontinued in North America, sold only 4 units.

The reasons for the steep decline in EV sales are multifaceted. Analysts attribute the drop to a combination of reduced local market demand and a restructuring of Genesis's electrification strategy. The overall U.S. EV market shrank from 607,653 units in the first half of last year to 462,892 units this year, a 23.8% decrease.

Additionally, a temporary supply gap due to the restructuring of Genesis's U.S. sales lineup and production base has contributed to the decline. Hyundai halted production of the GV70 electrified model at its Alabama plant in June of last year and has since been supplying a new model from its Ulsan plant. The G80 electrified model was withdrawn from the North American market in August of last year, further reducing the local EV lineup. This explains why Genesis's EV sales performance has inevitably slowed.

To recover its EV sales base, Hyundai has opted for a price reduction strategy. The starting price for the 2027 model GV60 is set at $46,250, which is 11.9% lower than the 2026 model's price of $52,525. The 2027 GV70 electrified model is priced at $58,500, approximately 9% cheaper than the previous year.

Alongside price reductions, the company is also expanding its electrification portfolio with new models. The flagship electric SUV, the GV90, is set to enter the U.S. market next year. Additionally, the brand's first hybrid electric vehicle (HEV), the GV80 HEV, will be unveiled this month, broadening the electrification options. The speed at which these new models establish themselves in the market will likely determine the success of Genesis's electrification strategy moving forward.