“Hyundai remains undeterred and optimistic amidst a more competitive and resilient automotive industry, banking on its long track of best-in-class products and services.”
– Ma. Fe Perez-Agudo, HARI President and CEO
Performance and Drivers
Hyundai Asia Resources, Inc. (HARI), the official distributor of Hyundai vehicles in the country, registered a 6% year-on-year decline in the second quarter of the year. Unit sales dipped to 5,325 units from the recorded 5,668 units sold in the same period of the previous year. Meanwhile, year-to-date sales reached 10,689 units, 8% less from total 11,651 units sold in the first semester of 2014. Remarkably, month-on-month sales data posted a 10% growth, from 1,705 units to 1,883 units, ushering the brand’s more hyped up performance in the succeeding months in light of the expected release of new models such as the all-new Tucson and i20.
The Passenger Car (PC) category declined by 11% to 3,458 units in the second quarter as compared to the 3,892 units sold in the same quarter of 2014. On the other hand, Light Commercial Vehicles (LCV) increased by 5% to 1,867 units from the 1,776 units in the second quarter of 2014. Semestral figures show PC’s meek decline of 10%, while LCV contracted by 5% in the first semester of this year.
Sales and Economic Outlook
For the first quarter of the year, the country’s economic performance fell short of market and government expectations as it registered 5.2% growth from the lingering effects of government underspending. Although this has led to slight cuts in growth expectations from the market, the government remained bullish in achieving its 7-8% growth target for the year citing low prices, robust private consumption, accelerated public spending, and continued support from OFW remittances.
Despite slower-than-expected Q1 GDP growth, the automotive industry remains undeterred as it threads the age of motorization. As such, the industry sees sales expanding across all segments. The industry is expected to post a 13% growth in the succeeding quarter. The rewards of a booming industry are up for the taking for all the auto players brave enough to take on the challenges this new age brings.