Hyundai Asia Resources, Inc. (HARI), the official distributor of Hyundai vehicles in the country, capped off its 1st Semester 2018 sales with 15,957 unit sales.
Despite a conservative performance with an 8.1% decline compared to the 1st Semester of 2017, the brand experienced a minimal drop relative to the performance of the Philippine automotive industry. The 2nd Quarter alone saw vehicle sales at 7,226 units with June being the top performing month with 2,827 units sold; 37.6% more than the 2,054 sold in previous month. 1st Semester segment results showed 10.0% slowdown for the Passenger Car (PC) segment, while the Light Commercial Vehicle (LCV) segment made better progress with only a 3.9% decline.
“Hyundai’s 1st semester sales remain consistent with the trend in the industry,” said Ma. Fe Perez-Agudo, HARI president and chief executive. “Nonetheless, we are confident that we can continue to respond to these challenges and certainly delight our consumers with our improved array of products and services as we are expecting greater potential for the rest of the year.”
As the volume driver of the brand, the PC segment accounted to more than two-thirds of the total Hyundai vehicles sold in the market of the 1st Semester. Led by the Eon and Accent, the two name plates remain as part of the top selling passenger cars in the country.
The Light Commercial Vehicles (LCV) segment owned the remaining one-third but took center stage as the segment increased by 4.9%, from 2,472 units in 2017 to 2,593 units in 2018. Propelled by the sale of H-100, it was the only model to have shown growth in both the 1st semester and 2nd quarter measures; 36.6% and 88.0% respectively.
Sales and economic outlook
Recent falls in the value of the peso, rises in imported fuel prices, a higher than ever inflation rate, and other seasonal factors have temporarily dampened consumer demand for automotive vehicles. To a certain extent, the TRAIN Law has also played a role as models priced in the middle of the bracket are given a higher excise tax. However, business and consumer confidence remain upbeat as the increasing investments of the current administration’s “Build, Build, Build” initiative, a strong domestic demand, and a stable labor market played a role in influencing these positive sentiments. Nonetheless, Hyundai has once again proven itself to remain resilient in the middle of the added external pressures to the industry, as attested by the steady movement in the brand’s sales trend. As the market begins to adjust to the effects of the TRAIN law, we expect the sale of automotive vehicles to pick up in the coming months.