Hyundai banks on LCV, CV segments to recover after 9-month sales decline

THE Philippine distributor of Hyundai vehicles has seen its sales from January to September dip almost 4 percent, but is banking on the light commercial vehicle (LCV) and commercial vehicle (CV) brackets to bolster its recovery.

In a sales report on Tuesday, Hyundai Asia Resources Inc. (Hari) disclosed its nine-month sales declined 3.95 percent to 24,762 units, from 25,781 units during the same period last year. The automobile distributor performed positively in the LCV and CV segments, but posted a double-digit contraction in its passenger car (PC) sales.

As Hari makes changes in its PC lineup, its sales in this bracket dropped close to 15 percent to 13,103 units, from 15,359 units.

On the other hand, LCV sales after three quarters improved 8.93 percent to 10,972 units, from 10,081 units during the same stretch last year. Further, sales of CVs grew twofold to 687 units, from 341 units.

Combined, these segments registered a nearly 12-percent growth to 11,659 units, from 10,422 units—something Hari attributed to lower inflation rate, increased government spending, as well as a diversifying roster of SUVs, vans, trucks and buses.

Hari President and CEO Maria Fe Perez Agudo shrugged off the firm’s sales slowdown, arguing “the automotive industry continues to recover” after a lackluster showing last year. She added Hari’s sales is projected to pick up over the next months on introduction of new products and services in the market.

Last year the automobile distributor’s sales slipped over 6 percent to 35,401 units, from 37,678 units in 2017, mirroring the industry-wide decline blamed on tax increases, record-high inflation, unstable oil prices and rising borrowing costs.

“This year has been characterized by highs and lows as the automotive industry continues to recover. Beyond external factors, we believe that sales will only improve in the coming months as we introduce new products and services that are relevant to our customers while redefining vehicle ownership,” Agudo said.

Targeting to grow sales by 10 percent this year, Hari is expanding its reach in the CV segment by putting up more dedicated dealerships nationwide.

Its CV sales are also expected to be fueled by the firm’s participation in the government’s PUV modernization program. The Philippine distributor of the South Korea-made vehicles just secured certificates of compliance for the Hyundai H-100 Class Modern Jeepney and the Hyundai HD50S Class 2 Modern Jeepney for their enrollment in the PUVMP.