Hyundai Asia Resources, Inc. (HARI), the official distributor of Hyundai vehicles in the Philippines, had its own ‘Kona Moment’ as the brand experienced its best performing month in 2018 thus far. July sales amounted to 3,279 units, the second time the brand has breached the 3,000 limit for 2018; 8.8% less from the 3,594 units sold in July 2017.
This puts the total January to July 2018 sales to 19,236 units, a marginal decline of 8.2% from the same period of the previous year. Segment results show the Passenger Car (PC) segment has slowdown by 14.5%. The Light Commercial Vehicle (LCV) segment continued to take center stage as the brand’s growth driver. The LCV segment increased by 6.2% as the introduction of the New Kona, HARI’s Sub Compact SUV model, contributed to 13% of the overall sales for the month of July.
The PC segment maintains the bulk of units sales for the brand by accounting to two-thirds of the total vehicles sold in the market from January – July 2018. Led by the Eon and Accent, the two name plates remain to be top sellers in their own sub-segments; with the Accent sitting mightily in the top 3 of the Industry’s Passenger Car Segment.
The Light Commercial Vehicles (LCV) segment owned the remaining one-third of the brand’s vehicle sales. Driven by the Kona, Tucson, and H-100, the LCV segment has maintained an upward growth trajectory in both the Year-to-Date and Year-on-Year measures; 6.2% and 58.3% respectively.
Sales and Economic Outlook
The Philippine economy is still at its transitory phase as a result of all the reforms rolled out by the current administration. A continually rising inflation, the devaluing of the local currency, increasing world oil prices, and the excise put on automotive vehicles have influenced the market to hold on to their purchase of big-ticket items. Optimistic expectations, however, continue to take hold as the economy is likely to pick-up the pace in the second quarter of 2018. Demand-side factors such as positive business and consumer confidence and the increasing investments of the current administration’s “Build, Build, Build” program would be enough to balance out any perceived negative outcomes in the economy. Hyundai continues to endure as the brand remains buoyant amidst the disruptions faced by the industry. We expect transitory effects begin to fade the sale of automotive vehicles to stabilize in the coming months as these.