In 1999, Hyundai entered the luxury car segment with the introduction of the XG model as an entry-level premium vehicle. The model underwent a significant update in 2003, which enhanced its performance capabilities and overall market positioning.
Aiming to compete with established players like the Nissan Altima and Toyota Avalon, Hyundai faced challenges in establishing its presence in the premium automotive market. The XG lineup represented the company’s rebranding effort, albeit with an unusual branding approach – the H-badge and nameplate were positioned only on the trunk lid, making it difficult to identify the brand from the front. The updated XG350 model launched in 2003 brought both aesthetic and technical improvements to better compete with rivals.
Externally, the vehicle’s most striking feature was the chrome-plated grille with vertical slats. This prominent element was complemented by newly designed headlights with clear glass covers. The front bumper showcased an elegant lower grille with horizontal lines and fog lights positioned on the outer edges. At the rear, the taillights received a revised design incorporating vertical reverse lights.
The interior of the XG350 featured heated leather bucket seats as standard equipment. Additional premium touches included wood trim accents on the center console, dashboard, and door panels. A distinctive design feature was the frameless door windows, setting the vehicle apart from its competitors. The rear seating area offered ample space for three adults, although the bench seat was designed with a two-passenger contour pattern.
Powering the vehicle was a 3.5-liter V6 engine equipped with an electronic drive-by-wire throttle system, replacing the traditional cable-operated setup to enhance passenger comfort. The XG350 was exclusively paired with a five-speed automatic transmission.