Hyundai Motor, Kia and Genesis are rapidly closing the product-quality gap with established luxury brands such as Mercedes-Benz and Lexus, according to a report by a U.S. automotive outlet.
"Little Difference From $100,000 SUVs"
CarBuzz, a U.S. automotive publication with 6 million monthly visitors and about 7.5 million social media followers, reported that Hyundai Motor Group is quickly narrowing the quality gap with traditional luxury brands, including German marques.
In a test drive review of the Hyundai Palisade Hybrid, CarBuzz said it was "hard to feel much difference from luxury sport utility vehicles costing more than $100,000 in terms of ride comfort and quietness." The outlet added that the Palisade and the Kia Telluride can be smart choices for consumers seeking reasonable fuel economy and pricing.
The outlet cited five years of data from J.D. Power's Automotive Performance, Execution and Layout (APEAL) Study as the basis for its assessment. The study measures how satisfied new-vehicle buyers are with design, performance, convenience and technology.
Genesis scored between 869 and 886 points over the past five years, topping Mercedes-Benz, Lexus, Audi, Volvo, Acura and Infiniti in multiple years. CarBuzz described Genesis as "no longer a chaser but a brand firmly established at the very top of the luxury market."
Hyundai Motor and Kia also held scores of around 850 points, narrowing the gap with major premium brands. As of 2026, Hyundai Motor scored 858 points, just 12 points behind Lexus and 18 points behind Mercedes-Benz, while Kia scored 857 points, only six points behind Volvo. In some years, Hyundai Motor and Kia scored higher than Audi, Acura and Infiniti.
Robotics and In-House Steel Underpin Competitiveness
CarBuzz also pointed to Hyundai Motor Group's manufacturing capabilities as a factor behind this competitiveness. The outlet cited the group's increased investment in artificial intelligence-based robotics and next-generation production automation, its strategy to improve production efficiency and flexibility with Boston Dynamics, and its in-house steel production capacity, which allows it to manage manufacturing costs while responding to swings in raw material prices.
Analysts say such investments and capabilities could lower production costs over the long term, providing a foundation for delivering high product quality at reasonable prices.
The competitiveness is also translating into sales. Hyundai Motor and Kia sold 178,405 vehicles in the U.S. last month, down 0.6% from a year earlier but seen as a solid performance given the overall market slowdown. Rival Toyota saw a steeper decline, with sales falling 4.4%.
In a separate report, CarBuzz said Hyundai Motor and Kia set a record in the U.S. market in the first half of this year, selling 920,383 vehicles, up 3% from a year earlier. Hybrid sales came to 225,321 units, surging 65.5% from the same period a year earlier.
CarBuzz cited the broad hybrid lineup as the key driver of overall sales growth, saying that unlike other global automakers struggling with slowing electric vehicle demand, Hyundai Motor Group is responding flexibly to shifting demand with a diverse portfolio spanning hybrids, electric vehicles and internal combustion engine cars.
