“Once Mocked as Cheap Korean Knockoffs That Broke Down Often,” Hyundai Motor Company and Kia Corporation Stage a Satisfying Reversal [Cars Around the World]

A Dramatic Automotive Reversal, Recognized More Overseas From Being Scorned as Cheap to Being Welcomed as High-Quality Awards Pour In: “The Quality Is Insanely Good”

사진 확대 Genesis GV90, which has further elevated the standing of Korean cars [Photo source: Genesis / Edited by Choi Ki-sung, Maeil Business Newspaper Digital Newsroom reporter]

“From cheap to high-quality”

It is an automotive reversal rivaling a dramatic turnaround in life. That is how Hyundai Motor Company, Kia Corporation, and Genesis are now viewed.

It was already 40 years ago. Hyundai Motor Group’s history of entering the U.S. market began with the Hyundai Excel in 1986—and it started in humiliation. The cars were dismissed as “cheap Japanese knockoffs that broke down often but were driven because they were inexpensive.”

After the first and second oil shocks in the 1970s, Hyundai Motor Group was considered far inferior to Honda, known for its “technology,” and Toyota, known for its “quality.” Those Japanese automakers had already established a foothold in the United States with fuel-efficient, reasonably priced vehicles offering strong value for money.

As Japanese automakers also built premium images through Lexus, the perception of Korean cars as cheap became entrenched.

What about now? Hyundai Motor Company and Kia Corporation have completely shed their cheap image.

Genesis, whose brand was launched only 10 years ago, is also competing confidently with German and Japanese premium brands such as Mercedes-Benz, BMW, Audi, Porsche, Lexus, and Infiniti.

Korean Cars’ Excellence Is Recognized Even More Overseas

사진 확대 File photo of a Genesis GV80 crash test [Photo source: IIHS]

Hyundai Motor Company, Kia Corporation, and Genesis are repeatedly being recognized overseas—not in Korea—for offering products that match or sometimes surpass competing German and Japanese vehicles.

The findings from U.S. market research firm J.D. Power are a prime example. J.D. Power’s evaluations are known for being particularly demanding.

They have a major impact not only on the auto industry but also on consumers. They are regarded as the “Oscars” of automotive quality.

Since 2017, Genesis has posted results that match or surpass German and Japanese premium brands such as Mercedes-Benz, BMW, Porsche, and Lexus in J.D. Power’s automotive evaluation categories: quality, appeal, new technology, and dependability.

In November last year, Hyundai Motor Group was also selected as the automaker with the most vehicles recognized as “safe cars” in crash evaluations by the Insurance Institute for Highway Safety (IIHS).

It was the second consecutive year, following 2024. The achievement puts the group on a level that rivals Volvo Cars, the byword for safety.

사진 확대 The Kia EV5 (left) took first place in an evaluation conducted in Germany, beating the Tesla Model Y. [Photo sources: Kia Corporation and Tesla / Edited by Choi Ki-sung, Maeil Business Newspaper Digital Newsroom reporter]

The praise has not been limited to the United States. Since the 2020s, Korean cars have also been recognized for their excellence in Germany, the home of Mercedes-Benz, BMW, and Porsche, where “car pride” runs deep.

This year is no exception. In April, Genesis was selected as the “Best Car Brand” in a reader survey by Auto Bild, a leading German automotive magazine.

The evaluation covered 52 automotive brands, focusing on three categories: quality, design, and value for money.

Genesis beat European premium brands such as Porsche to win both the overall top honor, “Best Car Brand,” and the top luxury-category honor, “Best Luxury Car Brand.”

In a comparative evaluation of four electric SUVs announced last month by Auto Motor und Sport (AMS), a leading German automotive magazine, the Kia EV5 took first place overall, beating the Tesla Model Y, China’s XPeng G6, and the MG S6 EV from MG Motor, a subsidiary of China’s SAIC Motor.

“Genesis Is No Longer a Chaser but Firmly in the Top Tier”

사진 확대 The Kia PV5 has raised expectations for Kia Corporation’s electric vehicles [Photo by Choi Ki-sung, Maeil Business Newspaper Digital Newsroom reporter]

Is that the end of the story? Not at all. Hyundai Motor Group received more favorable reviews this month as well.

This time, the praise came from CarBuzz, a leading U.S. automotive media outlet. CarBuzz has more than 6 million monthly readers and 7.5 million social media followers. It provides review content for consumers preparing to buy vehicles.

CarBuzz recently reported that Hyundai Motor Company, Kia Corporation, and Genesis are rapidly narrowing the product gap with traditional luxury brands, including German marques, and are shaking up the established order of the automotive market.

CarBuzz said, “It is difficult to find a difference between the Hyundai Palisade’s smooth ride and quiet cabin and those of the many luxury SUVs priced above $100,000 that we have test-driven.”

It emphasized that the Hyundai Palisade and Kia Telluride could be smart choices for consumers seeking models with the design, presence, and comfort of luxury brands, along with reasonable fuel efficiency and pricing.

After analyzing J.D. Power automotive appeal-satisfaction data from the past five years, CarBuzz concluded that Hyundai Motor Company, Kia Corporation, and Genesis are rapidly narrowing the satisfaction gap with established luxury brands.

CarBuzz explained that they offer interior quality, user interfaces, and quietness comparable to what was once available only in flagship models from established luxury brands, but at more reasonable prices.

CarBuzz noted that Genesis had scored higher than Mercedes-Benz, Lexus, Audi, Volvo Cars, Acura, and Infiniti over several years, describing it as “a brand that is no longer a chaser but has firmly established itself in the top tier of the luxury market.”

사진 확대 The New Hyundai Elantra Has Also Received Favorable Reviews Overseas [Photo by Choi Ki-sung, Maeil Business Newspaper Digital Newsroom reporter]

CarBuzz said Hyundai Motor Company and Kia Corporation have also significantly narrowed the gap with premium brands, rather than remaining merely mainstream brands.

CarBuzz added that the competitiveness of Hyundai Motor Company, Kia Corporation, and Genesis is not limited to outstanding products, highlighting the group’s manufacturing capabilities as well.

It reported that Hyundai Motor Group is expanding investment in AI-based robotics and next-generation production automation, while pursuing a strategy with Boston Dynamics to improve manufacturing efficiency and production flexibility.

CarBuzz analyzed that these investments could eventually lower production costs and provide products with even higher levels of quality at reasonable prices.

It also identified Hyundai Motor Group’s in-house steel production capabilities as a competitive advantage that could help it respond to fluctuations in raw-material prices and manage manufacturing costs more consistently.

Of course, Hyundai Motor Group still has a long way to go. Although it has scored victories against German and Japanese brands, some observers still consider it a step below when tangible and intangible value are assessed comprehensively.

Still, one thing is clear. The mocking refrain—“How dare a Korean car even try?”—has disappeared completely. They are no longer “cheap”; they are “good-quality.”

This article has been translated by GripLabs Mingo AI.