Hyundai sales plunge by 28% in January

MANILA, Philippines — The official distributor of Korean automotive brand Hyundai in the country registered a sales drop of 28 percent in January from a year ago on weak consumer demand due to Taal Volcano’s eruption and the outbreak of coronavirus disease 2019 (COVID-19).

Hyundai Asia Resources Inc. (HARI) said in a statement yesterday it sold 2,045 units in January, lower than the 2,825 units in the same month last year as all vehicle segments registered declines.

HARI’s passenger car sales fell 33 percent to 967 units in January from the previous year’s 1,443 units.

Light commercial vehicles sold in January also slid 20 percent to 1,053 units from 1,315 units a year ago.

For the commercial vehicle segment, HARI’s sales plunged 63 percent to 25 units in January from 67 units last year.

HARI president and chief executive officer Ma. Fe Perez-Agudo attributed the lower sales performance in January to Taal Volcano’s eruption and COVID-19.

HARI’s dealerships in Metro Manila and CALABARZON (Cavite-Laguna-Batangas-Rizal-Quezon) had to be closed for several days in January due to the ashfall.

Meanwhile, COVID-19 affected vehicle demand as consumers opted to stay in their homes.

As health precautions are being implemented in both international and local ports to prevent the spread of COVID-19, HARI said delays in shipments are beginning to affect sales volumes.

International shipping lines are also cutting down on available seaborne vessels in response to weak global demand.

“The Taal ashfall and COVID-19 later in the month caused a temporary setback, dampening demand and supply chain disruptions, making 2020 a less resilient year. But given the Philippines’ stable economic fundamentals – a stable exchange rate, strong private consumption, lower inflation and interest rates, and robust public spending – the impact of these factors can be well managed,” Agudo said.

She said the company would double its efforts to catch up in the next few months by rolling out new products and promos to boost sales.