Hyundai Asia Resources, Inc. (HARI), the official distributor of Hyundai vehicles in the country sold a total of 2,758 vehicles for the first month of 2019. January sales showed a 5.0% and 6.7% dip on the year-on-year and month-on-month periods, respectively.
It is widely accepted that the slowdown of sales is because of the market’s misconceptions/misinformation of the TRAIN law, that, still confuses many buyers.
The Passenger Car (PC) segment is on a transition phase and declined by 29.1% from 2,036 units sold in January 2018 to 1,443 units in January 2019. The release of the New Accent buoyed the segment to maintain a consistent demand for the brand’s poplar sedans. It will be expected that sales of Hyundai passenger cars will eventually grow in the coming months counting on the recent launch of the Reina.
On the other hand, the Light Commercial Vehicle (LCV) segment experienced a significant growth by 51.7%, from 867 units in January 2018 to 1,315 units in the same period of this year. The addition of the Kona and the heightened demand for the H-100 has bolstered the segment’s performance.
Sales and Economic Outlook
Macroeconomic performance of the previous year has left the market cautious in purchasing big ticket items, such as cars. However, this is expected to subside as the economy will improve on the backs of sustained government spending and increasing investments on the government’s infrastructure program. This is supported by positive sentiments from the market as inflation begins to ease, dropping to 4.4% in January 2019, the effects of TRAIN slowly dissipating, and the BSP expected to loosen its monetary stance.
All of which will play for a better environment for the automotive-buying consumer. Overall, Hyundai remains positive that the positive economic outlook paired with the timing of New Model releases will be enough to boost the demand for Hyundai vehicles in the country.
“The outlook for the Philippine automotive industry remains optimistic as macroeconomic headwinds begin to ease. Hyundai stands resolute as it brings in new and market-leading products to take advantage of the opportunities laid out in 2019.”
– Ma. Fe Perez-Agudo, HARI President and CEO