“Against a slower domestic economy, global market uncertainties and the seasonal weakness of auto sales in August, consumer demand for Hyundai products continues to be resilient as evidenced by growing customer orders. Supply setbacks, however, continue to lag delivery to our customers and dampen our sales growth. For the remainder of the year, we expect that with a more favourable supply situation, we will be able to keep our sales performance on a positive growth track.”
Ms. Maria Fe Perez-Agudo
President and CEO, Hyundai Asia Resources, Incorporated
HARI sold a total of 13, 271 units from January to August 2011 4% dip from the same period last year. While there was softer growth in the LCV segment, PC sales grew by 4% on the back of significant expansion in the sales of newcomer Hyundai Elantra, Midsize PC bestseller Hyundai Sonata and sports sedan Genesis Coupe.
For the month of August, seasonal sales slowdown and supply limitations dragged sales to decline by 26% from the same month last year. PC sales dropped substantially, particularly in the sub-compact segment, with the stoppage of production of Getz model which recorded marked sales in the prior period. On the other hand, LCV sales grew by 3% with the strong sales of Tucson and the H100.
Combined with the seasonal downtrend in auto sales for August, global demand-supply gap continues to affect the timeliness of product delivery which in turn leads to increased unmet orders for HARI and deter more positive sales outcomes. Consumption trends for the first seven months of the year showed that car buyers steadily snapped the new Accent, the new Elantra, the Sonata, and the Genesis Coupe. In August, with fresh supplies of the bestselling Tucson, sales rose by 123% or 453 units sold, contributing significantly to the 3% growth in total LCV sales. On the premium side, despite supply constraints, the Grand Starex remains a favorite in its category.
HARI’s sales outlook remains optimistic for the rest of the year with expectations of reduced uncertainty from a stable domestic and global economy, better supply situation and improved consumer outlook from increased consumer liquidity or cash flow from the yuletide bonuses and stronger OFW remittances during the last quarter of the year.