Hyundai PH sales dips by 27% in Jan. following Coronavirus (Covid-19) outbreak

MANILA: Hyundai business in the Philippines recorded a 27.6-percent drop in sales due to the effects of the 2019 Novel Coronavirus (Covid-19), which originated in Wuhan, China, earlier this year.

Hyundai Asia Resources Inc. (HARI) is the official distributor of the Korean car brand, Hyundai, in the Philippines.

HARI recorded a sales decline from 2,825 units in January last year compared to 2,045 units in January 2020. According to HARI chief executive officer and president Ma. Fe Perez-Agudo, the outbreak of the Covid-19, which began in January this year, has led to a temporary delay. It has disrupted the global supply and demand chain, making 2020 a challenging year for everyone.  

Covid-19 also caused a delay in the vehicle shipments following additional health precautionary measures in local and international ports.

In the Philippine market, Hyundai’s passenger car sales lowered from 1,443 units in January 2019 to 967 units (33% decline) in January this year.

The sales of light commercial vehicles also dropped from 1,315 units in January 2019 to 1,053 units (19.9% decline) in the same month this year.

Commercial vehicles recorded the highest drop of 62.7 percent in terms of sales. The decline was from 67 commercial vehicle units sold in January the previous year to 25 units in January 2020.

Regardless of this setback, Perez-Agudo stated that Hyundai can adequately handle the aftermath of downside risks.

The executive also emphasized that because of the positive economic fundamentals of the country, the effects of this setback are manageable. Economic fundamentals include the robust public spending, lower inflation as well as interest rates, high private consumption, and the stable exchange rate of the Philippines.

On a brighter side, Hyundai plans to sell a higher number of modern jeeps in line with the Public Utility Vehicle Modernization Program of the Philippine government.

In January this year, HARI launched a modern jeep, the Hyundai HD50S Class 3. During the same month, HARI brought the first batch of Hyundai HD50S Class 2 modern jeeps to the Public Transport Alliance of General Santos City, South Cotabato.

The alliance also ordered a total of 300 units of modern jeepneys from the company. These modern jeepneys are perceived to reinforce the commercial vehicle sales of HARI this year, despite setbacks due to the outbreak.