Hyundai Asia Resources Inc. said Monday it will bring Hyundai trucks and buses into the Philippines to take advantage of the growing infrastructure and construction industry.
Hari president and chief executive Fe Perez-Agudo said Hyundai Motor Company of Korea appointed her group as the official distributor of Hyundai trucks and buses in the Philippines.
“We’re starting with around 800 units of category 3 and 4 units this year. We need to build the market first before we bring in category 5 and 6, which are mostly heavy equipment,” she said.
Hari and its principal HMC signed on Monday the contract that will authorize the former to distribute Hyundai commercial vehicles in the Philippines.
HMC will introduce six models under category 3 and 4, including a dump truck model suited for Philippine setting.
The Philippine government expects infrastructure spending to account for 5 percent to 7 percent of the gross domestic product in 2016, up from 3 percent or about $12 billion in 2015.
Agudo said Hari wanted to take advantage of this opportunity by bringing in heavy-duty trucks and buses “to bring in new value to the market.”
“The timing is just perfect. All the essential ingredients that favor our new venture are in place: a stable economy to support the demand; industries on a steady growth track; upbeat consumer confidence; a vibrant new market that welcomes new players; and an enabling policy environment characterized by the implementation of the Asean Korea Free Trade Agreement and new landmark policies designed to boost the competitiveness of Philippine business in the Asean Economic Community,” Agudo said.
She said the participation of Hyundai in the commercial vehicles sub-sector would most likely influence owners to level up with brand new units.
Data from the Land Transportation Office showed of the 29,000 commercial vehicles registered annually, only 8,000 units came from members of Chamber of Automotive Manufacturers Philippines Inc. and the Truck Manufacturers Association while majority of heavy trucks and buses were a combination of second-hand and new units.
Hari expects to have a market share of 10 percent in the commercial vehicle sub-sector by 2020.
The company said test models were expected to arrive by March.