HYUNDAI ASIA RESOURCES, Inc. (HARI), the official distributor of Hyundai vehicles in the Philippines, sold 19,790 units in the first seven months of 2019 equivalent to a 2% growth versus the 19,478 sold in the same period last year.
The South Korean vehicle brand’s resilient performance for the year can be attributed to strong sales in major segments of its business, namely Light Commercial Vehicles (LCV) and Commercial Vehicles (CV). Its Passenger Car (PC) business continued to be fueled by its flagship Accent and the Reina, which was launched early this year.
“This year has been challenging for the automotive industry but Hyundai’s modest growth reflects its resilience and strong brand anchored on reliable and comfortable vehicles, superior customer service, and continuing programs to ensure worry-free ownership,” HARI President and CEO Ma. Fe Perez-Agudo said.
“With key programs in the pipeline, we aim to end the year strong,” Ms. Agudo added.
The LCV segment grew by 28% in the first seven months of 2019 to 8,645 units. The globally awarded Kona is now one of the best-selling crossovers in the market with sales increasing by 474% over the period to 2,455 units. The versatile H-100 van, which has numerous applications including cargo van, ambulance, modern jeepney, refrigerated van, dropside truck, and wing van, remains the largest contributor to this segment with 3,860 in sales equivalent to a 64% growth year-to-date.
Sales in the PC segment decreased by 15.4% to 10,565 year-to-date July as the market continues to shift to crossovers and SUVs from compact and midsized sedans. Despite this, the market remains strong for subcompact sedans, as evidenced by sales of the Reina and the Accent, which accounted for more than half the sales of the company for the period, totaling 10,189 units. The venerable Accent continues to be the company’s No. 1 selling vehicle due to its styling, power, and fuel efficiency in a compact package.
The CV segment continues to be a key growth driver with sales growing by 140% in the first seven months of the year compared to the same period in 2018. CV sales hit 580 units driven by increased economic activity, especially from small-to-medium enterprises (SMEs).
“We expect higher demand for Hyundai vehicles over the medium term as we see lower inflation and interest rates. While others are taking a wait-and-see position, we are pushing ahead with our expansion programs which include the opening of three new dealerships in central and northern Luzon over the next few months,” Ms. Agudo added.
The Hyundai Accent’s well-known fuel-efficiency, value, and safety features have made it a favorite among Filipino consumers. Like other Hyundai vehicles, it is composed of Advanced High Strength Steel (AHSS) which is lighter and stronger than the usual steel used in other cars. It is likewise covered by a 5-year Unli-mileage warranty.