Hyundai Asia Resources, Inc. (HARI) – the official distributor of the country’s No. 1 selling Korean automotive brand – recorded 2,045 units in sales for the first month of the year amid reduced consumer demand. Lean demand was felt across the majority of automotive brands in the industry due to the Taal Ash Fall and COVID-19.
“The Taal Ash Fall and COVID-19 later in the month caused a temporary setback, dampening demand and supply chain disruptions, making 2020 a less resilient year. But given the Philippines’ stable economic fundamentals - a stable exchange rate, strong private consumption, lower inflation and interest rates, and robust public spending - the impact of these factors can be well managed,” HARI President and CEO Ma. Fe Perez-Agudo said.
The Taal Ash Fall caused many automotive dealerships and facilities to close in the NCR and CALABARZON for several days in January due to safety reasons. Consumers have likewise taken a conservative approach to COVID-19, cutting down on big-ticket items like vehicles while staying in their homes.
The company reported that delays in shipments are beginning to affect sales volumes as extra health precautions were initiated in both international and local ports. International shipping lines are also cutting down on available seaborne vessels in response to weak global demand.
“Hyundai has experienced several boom-bust cycles and disruptions in the industry but one thing has never changed – our unwavering commitment to provide quality vehicles, premium services, and worry-free ownership. We will work doubly hard to catch up in the next few months while rolling out new products and promos relevant to customers,” Ms. Agudo added.
Year-on-year January, the Passenger Car (PC) segment contracted by 33% with 967 units from 1,443 units the previous year. Hyundai’s dynamic duo – the Hyundai Reina (PC Segment A) and Hyundai Accent (PC-Segment B) continued to hold court, comprising most of PC sales. Both models are known for their segment-topping performance, innovative design, and fuel efficiency.
Light Commercial Vehicles (LCV) sales were reduced by 19.9% in January 2020 to 1,053 units compared to the same month last year. Despite the drop, Hyundai H-100 light truck sales increased by 15.3% equipped with Hyundai’s powerful Common Rail Direct Injection (CRDi) diesel power plant. The H-100 is the leader in its segment.
Resolute, HARI continues to expand its presence with the opening of PC dealerships in two Next Wave cities, Hyundai Angeles and Hyundai Baguio.
HARI’s Commercial Vehicles (CV) sales dropped to 25 units for the month but the company remains optimistic that sales will pick-up significantly as it has begun delivering units of Hyundai H-100 Modern Jeepney Class 1 and HD50S Modern Jeepney Class 2 to key transport cooperatives all over the country. In mid-January, HARI delivered the initial batch of Hyundai HD50S Class 2 Modern Jeepneys to the Public Transport Alliance of Gensan (PTAG). PTAG ordered over 300 units.
In the last day of January, the company debuted the Hyundai HD50S Class 3 Modern Jeepney making it the first player of the national PUV Modernization Program (PUVMP) to complete its lineup of PUJ offerings.
“Our Hyundai Modern Jeepneys will provide the public with a comfortable, safer and efficient means of transport. We are proud to be part of this advocacy since we believe that every Filipino should experience the Hyundai brand,” Ms. Agudo ended.