Hyundai Motor will unveil a new luxury sedan at the upcoming Busan International Motor Show, which is scheduled to open on May 29. The model, developed under the project name "AG," is bigger than the midsize Grandeur and smaller than the Genesis, a mid-size luxury sedan.
As sales of imported compacts and larger sedans have risen, the company started working on a model to compete with foreign rivals. Hyundai will reportedly introduce it at the show to gauge consumers' response. It will then roll out the model later this year after making some modifications.
Detailed specifications have not been revealed yet, but the model is likely to have a larger chassis than the Grandeur's and an engine bigger than 3 liters. It is expected to have features and functions comparable to the Genesis sedan but with a more luxurious interior.
In order to appeal to female consumers as well, Hyundai will apparently focus on providing a smoother and more comfortable ride with reduced noise. Prices are likely to range between W35 million and W45 million (US$1=W1,064).
"With the launch of the new model, we will speed up sales of our compact and larger sedans," a Hyundai spokesman said on Monday.
With Hyundai's new Genesis sedan released late last year, and its new seventh-generation Sonata unveiled in early March, the company hopes to gain sales momentum for its new model in the second half of this year, while also creating a synergy effect. However, some experts say that such a sales strategy can end up cannibalizing sales of the Grandeur and Genesis.
Meanwhile, 20 domestic and foreign carmakers including Hyundai, Kia, GM Korea and Renault Samsung will participate in the motor show. Ssangyong will skip it.