[Exclusive] Genesis Considering Hybrid Model... Development Project Launched

Genesis Expands Lineup Options with HEV Development
Development Project Launched... Mass Production Possibility Uncertain
Domestic EV Demand Slows... HEV Sales Show High Growth
Rear-Wheel HEV Expected to Offer Excellent Ride Comfort and Driving Performance

Hyundai Motor Company is developing a rear-wheel-drive-based hybrid system for its premium brand Genesis. This move comes as hybrid vehicles are rapidly emerging as an alternative to electric vehicles amid a recent slowdown in electric vehicle demand. The company plans to expand electrification not only with electric vehicles but also with hybrids, providing various options to meet market demand.

According to comprehensive reporting on the 20th, Hyundai Motor and Kia's research and development headquarters have recently launched a project to develop a rear-wheel-drive-based hybrid system and are recruiting development personnel internally. Currently, Genesis does not have any hybrid models. Existing Hyundai and Kia hybrid systems are all based on front-wheel or all-wheel drive. To equip Genesis, which primarily adopts a rear-wheel-drive system, with a hybrid system, a new engine must be developed.

Previously, Genesis announced an electrification plan to launch all new vehicles as electric by 2025. However, as global demand for electric vehicles has recently slowed and eco-friendly hybrid sales have surged as an alternative to electric vehicles, the internal need to introduce Genesis hybrid models has reportedly been raised.

However, even if development starts now, it is difficult to conclude that Genesis hybrid vehicles will be mass-produced. The industry typically considers a new vehicle cycle to be five years. If a completely new engine must be developed rather than just a partial update, it could take even longer. A Hyundai Motor official said, "From the perspective of a finished car manufacturer, research on various powertrains is naturally necessary, and it is difficult to officially confirm mass production under the current circumstances."

Genesis Logo

Electric Vehicle Slowdown... How Long Will Hybrids Remain Dominant?

Genesis's development of a rear-wheel-drive-based hybrid system can be interpreted as a form of insurance. As the global transition to electric vehicles is delayed more than expected, hybrids may continue to dominate the eco-friendly vehicle market for some time.

SNE Research forecasted that 13.77 million eco-friendly vehicles (BEV, PHEV, HEV) will be sold worldwide this year. This figure is over one million units lower than the forecast released in the first half of last year, and the growth rate was revised down from 36.4% to 30.6%. By vehicle type, the sales share is expected to be 45% electric vehicles, 36% hybrids, and 19% plug-in hybrids. Compared to previous forecasts, the share of electric vehicles was lowered by 4 percentage points, while hybrids were raised by 4 percentage points.

Hybrids are also strong in the domestic market this year. From January to October this year, domestic electric vehicle sales were 130,539 units, down 4.3% compared to the same period last year. In contrast, hybrid sales increased by 41.8% to 294,072 units. In terms of sales volume alone, hybrids are more than twice the number of electric vehicles.

Genesis sells more than 100,000 units annually in South Korea alone, with over 60% of annual sales being domestic. Due to the apartment-centric living style in Korea, dissatisfaction with electric vehicle charging is increasing. Moreover, it is analyzed that early adopters have mostly completed their electric vehicle purchases. As domestic market preference for hybrids rises, the development of a rear-wheel-drive-based hybrid system has become even more important.

Genesis G80

Is Rear-Wheel-Drive-Based Hybrid Development Feasible?

Currently, Hyundai and Kia's hybrid systems are mainly based on front-wheel drive. Sedans like the Grandeur and K8 use a front-wheel-drive-based gasoline 1.6 turbo hybrid engine. SUVs such as the Tucson, Santa Fe, and Sorento offer a choice between front-wheel and all-wheel-drive hybrid engines.

Genesis has adopted a rear-wheel-drive system not only for sedans but also for SUVs. For example, the Genesis flagship sedan G80 offers 2.5 and 3.5 gasoline turbo engines, with rear-wheel and all-wheel-drive options.

The reason Genesis chose a rear-wheel-drive engine and platform is for ride comfort and driving performance. Rear-wheel-drive vehicles have weight distributed front to rear, resulting in better ride comfort. In contrast, front-wheel-drive vehicles have the engine and major components concentrated at the front, causing the center of gravity to shift forward. This can lead to a "fish tail" effect where the rear of the vehicle sways like a fish's tail. Ride comfort is important for Genesis, which is widely used as a ceremonial vehicle.

Additionally, rear-wheel-drive vehicles are more stable at high speeds. Since the rear wheels provide the driving force, they push the car from behind, enabling more stable driving than front-wheel drive. Also, even at higher speeds, the rear wheels handle propulsion while the front wheels handle steering, improving cornering and handling performance. Therefore, rear-wheel drive was a natural choice for Genesis, which is equipped with high-performance engines.

However, rear-wheel-drive vehicles require additional components to connect the front engine to the rear wheels. This results in reduced interior space and increased vehicle weight. Furthermore, hybrid vehicles include additional components such as batteries. Overcoming these drawbacks is expected to be Genesis's next challenge.

Professor Kim Pil-su of Daelim University's Department of Future Automotive Studies said, "The introduction of a rear-wheel-drive-based hybrid is a strategic decision for the brand and is not technically difficult to develop. If Genesis adds a hybrid lineup as a premium brand, it will gain another weapon to target the global market."