(Bloomberg)–Hyundai Motor Co. is far from the top automobile brand of choice in China but its luxury-car division is seeking to change all that with a direct-to-market strategy targeting young, upwardly mobile consumers. Genesis Motor made its debut in China in April last year after entering North America, Australia and the Middle East. Interestingly its line up in the world’s biggest car market won’t include an electric vehicle, at least initially. “It is a tough market to enter but we can’t be a truly global brand without being in China, the most important market in the world,” Genesis China Chief Executive Officer Markus Henne said. Three models are currently available–the G70, G80 and GV80, starting from 249,800 yuan ($39,300) — and electric models should be added later this year. Tesla Inc.’s model Y SUV starts from around 300,000, by comparison, while an entry level BMW or Audi typically costs north of 200,000 yuan.

Car sales in China climbed 4.5% last year, rising for the first time since 2018 helped by demand for new-energy vehicles and premium automobiles. BMW AG posted record annual sales of more than 846,000 cars in China with its local partners in 2021, while data from the nation’s Passenger Car Association show the luxury market expanded almost 5% over the period. Henne acknowledged the growing appetite for EVs in China but said Genesis believes traditional cars will remain a popular choice for the foreseeable future. Around one in every five cars sold in the nation in December was electric. The company wants to position the Genesis brand first and it “can’t hurt to have two legs to stand on,” he said.

As a brand, Genesis, which launched in 2015, aims to only bring in electric models from 2025. In China, Henne said a bigger lineup than local EV makers like Li Auto Inc. and Xpeng Inc., plus a direct-to-consumer sales model, will make it more competitive and nimble.