Hyundai introduced the Grandeur on the market in 1986 and, by 1999, it reached the third generation and changed its name into XG.
The Korean carmaker didn't want to stay behind and introduced new models as soon as it felt like the older one was suffering from a constant drop in sales. It looked like its R&D team worked three shifts and burned the midnight oil with all three of them. In 1998 it introduced the XG as a mid-size executive vehicle ready to battle against some premium carmakers worldwide.
Its exterior design looked fresh, with slightly swept-back headlights and a flat, vertical, pined-out grille adorned with vertical chromed slats. There was no Hyundai badge on it. The only place where the company name was seen was on a chromed slat on the trunk lid. Its frameless windows were unique on the segment, apart from Subaru, who played in a different league.
Inside, the carmaker profiled the rear bench for two adults but advertised the car with five seating positions. It offered an adequate room for those in the back and for the front occupants as well. Hyundai installed an Infinity premium sound system in the center stack so the occupants would be pleased to spend more hours inside the car. Even though not all the plastics and trims were at the same level as those from the premium-segment, they were of a higher quality than on the rest of the Hyundai's range.
Under the hood, the Korean carmaker installed a choice of two engines, depending on the market. Both versions were paired to an automatic transmission.