Hyundai projects 25% sales hike

MANILA, Philippines - The local distributor of South Korea’s Hyundai vehicles expects its sales to grow by as much as 25 percent next year as it plans the rollout of new models.

Hyundai Asia Resources, Inc. (HARI) president and chief executive officer Ma. Fe Perez-Agudo told reporters on the sidelines of the turnover ceremony of the Grand Santa Fe and Grand Starex units as official transport for the Association of Southeast Asian Nations (ASEAN) Finance Ministers’ Investor Seminar and 23rd World Economic Forum on East Asia (WEF-EA) yesterday, the firm projects a 5-to-15 percent increase in total sales next year as supply of Hyundai vehicles become stable.

 â€œThis (5 to 15 percent) is growth after recovering from constraint insupply,” she said.

“The (launch of) new models could further increase our sales by 10 percent,” she added.

The firm plans to introduce the new Tucson next year as well as a new model to compete in the B segment which covers vehicles powered by 1.4 to 1.5 liter engine.

 Agudo said the firm may launch the I25, which is currently available in the US and Europe, in the local market next year.

For this year, she said the firm expects to post “flat growth” from last year’s total sales of 22,033 units.

While HARI suffered from supply problems last year and in the earlier part of the year with vehicles imported from South Korea, she said availability of the units has improved.

From having a stock level good for only five to 10 days before, HARI’s supply now last for 30 to 45 days.

“Now we are able to commit on delivery schedule. The problem before was we couldn’t commit,” she said.

As of the first quarter, HARI’s sales reached 5,983 units, up slightly from the 5,951 units in the same period last year.

As for the Association of Vehicle Importers and Distributors, Inc. (AVID) which is also headed by Agudo, total sales are expected to reach below 10 percent this year.

AVID sold 9,055 units in the first quarter, 13 percent higher than the 7,990 units in the same period last year.

The ASEAN Finance Ministers’ Investor Seminar is on May 20, while the 23rd WEF-EA would be held from May 21 to 23. Both events would be held in the Philippines.

Agudo said the firm plans to sell the 63 vehicles which would serve as official transport units at a discount, following the conclusion of both events.