“The minute impact of the TRAIN Law in the sale of Hyundai vehicles only shows the capacity of the brand in weathering any uncertainties in the auto industry. Automotive consumers remain responsive and the brand would continue to satisfy them with its line-up 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 Philippines showed bearish sales in the first four months of 2018. By the end of April, the brand posted a conservative 11,076 units sold or a -2.5% dip from previous year sales of 11,362 units. In April 2018 alone, sales slowed down by -7.0%, to 2,345 as compared to the 2,521 units sold the same period in 2017.
Hyundai’s volume driver, the Passenger Car (PC) segment, showed the best performance by contributing close to three-fourth of the brand’s sales. This would amount to 7,811 total unit sales for the month of January to April 2018, a 0.7% increase as compared to the same period of the previous year. Given this, the Accent and Eon remains unscathed as their growth was barely tempered amidst the lingering effects of the TRAIN bill by selling 5,113 and 2,168 units respectively.
The Light Commercial Vehicles (LCV) segment, first quarter sales slowed to -9.5%, from 3,609 units in the first four months of 2017 to 3,265 units in the same period of 2018. Sales in April, however, performed better than expected by only declining by 2.0%. The brand sold 739 units in April 2018, compared to 754 sold in April 2017.
Sales and Economic Outlook
Optimistic expectations persist for the Philippine economy as it is expected to pick up the pace in the first quarter of 2018. Higher household and consumer spending is thank for as it would greatly equalizer any tipping effects produced by the high inflation and the growing trade deficit. Demand-side factors are seen to be the main factors for such a positive view, with OFW remittances, a stable labor market, and increasing investments due to positive sentiments of the current administration’s “Build, Build, Build” initiative. As the effects if the TRAIN law begin to peak, Hyundai remains buoyant to its effects. The minimal effects TRAIN had in affecting the brand’s growth trajectory only shows the capacity Hyundai has in weathering any uncertainties faced by the automotive industry.