Hyundai sales slow down in 2015

MANILA, Philippines - Hyundai Asia Resources Inc. (HARI), the official distributor of Hyundai vehicles in the country, posted lower sales last year but sees a recovery this year behind expected gains under the ASEAN-Korea Free Trade Agreement (AKFTA) and the launch of new models.

HARI said sales last year declined four percent to 22,058 units from 23,019 units sold in 2014.

But in the fourth quarter, HARI’s sales improved one percent to 5,355 units from 5,326 units in the same period last year.

The company said the passenger cars segment finished the year strong with a 10 percent sales increase in the October to December period.

“The growth, however, was not sufficient to propel full year sales, which dropped by four percent,” HARI said.

Total fourth quarter sales of the light commercial vehicles was also sluggish as it fell 23 percent year-on-year.

Despite last year’s slowdown, HARI said it has high hopes for the company’s performance this year as well as that of the local automotive industry which is expected to benefit from the low inflation, improving employment rates, and greater disposable income.

“Hyundai prospects for 2016 are bright with the country’s very optimistic economic and industry outlook and the forthcoming benefits of the AKFTA. And we look to delight our customers even more with our upgraded lineup of portfolio modern premium products and services,” HARI president and CEO Ma. Fe Perez-Agudo said.

Agudo in an earlier interview said the company is targeting a double-digit sales growth this year.

She said one of the major drivers of growth this year is the implementation of the tariff reduction for vehicles imported from Korea to five percent from its current 20 percent.