TRAIN slows Hyundai sales in Q1

MANILA, Philippines — Sales of Hyundai Asia Resources Inc. (HARI) slowed in the first quarter as the company felt the impact of the new tax reform law, but expects a recovery in the coming months to finish 2018 positively.

The official distributor of Korean-made Hyundai vehicles in the country said sales in the first three months dipped 1.2 percent to 8,731 units from 8,841 units in the same period last year.

However, HARI’s sales in March reached 3,179 units, gaining 20 percent from 2,649 units sold in February.

If March’s sales performance should serve as an indication, HARI said it is on its way to gaining momentum from the “short-term effects of the TRAIN Law on consumer sentiment and purchase behavior.”

HARI expects the effects of the TRAIN (Tax Reform for Acceleration and Inclusion) Law to normalize in the coming months, noting that its minimal impact to the firm’s first quarter sales proved the brand’s resilience.

“Hyundai’s dynamism has shown no boundaries as it continues to beat the odds and hurdle any obstacles. First quarter sales remain firm and consistent with the trend in the industry, but we are expecting greater potential for the rest of the year. We are confident to continue this as we serve our customers with bolder, fiercer, unique, and game-changing products and services,” HARI president and CEO Ma. Fe Perez-Agudo said.

Agudo earlier said the company is initially targeting to sell 42,000 units this year, a 10 percent growth from its 2017 output.

In the first quarter, HARI sold 6,205 units of passenger cars, contributing to more than two thirds of the firm’s total sales.

The Accent was the segment leader during the three-month period with 3,899 units sold.

For the light commercial vehicle segment, the company sold a total of 2,526 units, 11.5 percent lower than the 2,855 units sold in the first quarter of 2017.

“This could be attributed to slower pick-up for the Starex and Santa Fe due to customer anticipation for newer model releases later in 2018,” HARI said.