HYUNDAI Asia Resources Inc. (Hari) endured a 26.7- percent drop in sales in May due to tempered consumer demand for automobile brought about by the country’s rising inflation rate.
The Philippine distributor of Hyundai vehicles sold 2,054 units in May as compared to 2,801 units at the same month last year. Total passenger car sales was down by 35.6 percent to 1,298 units, from 2,017 units, while total light commercial vehicle sales also dipped by 3.6 percent to 756 units, from 784 units, both year-on-year.
The car dealer’s performance in May put its year-to-date sales 7.3 percent slower to 13,130 units from 14,163 units last year. In the January-to-May stretch, only Elantra grew for Hari’s passenger car segment, at 6.3 percent to 594 units sold, from 559 units sold in the previous year.
Accent and Eon, the brand’s leading passenger vehicles, both recorded lower sales in the first five months. Overall, Hari’s year-to-date passenger car sales were down 6.8 percent to 9,109 units, from 9,770 units last year. The case was the same for Hari’s light commercial vehicles, as their year-to-date sales slowed 8.5 percent to 4,021 units, from 4,393 units in the previous year. All—Grand Starex, Tucson and Sta. Fe—but H-100 posted declines in the January-to-May period.
Hari President and CEO Maria Fe Perez-Agudo said Hari’s narrow sales in May were due to the inflationary effect of the Tax Reform for Acceleration and Inclusion (TRAIN) and oil price spikes.
“With persistent inflationary pressure in the market, the automotive industry continues to take the brunt of tempered consumer demand for big-ticket items. Nevertheless, Hyundai commits itself to turning the tide by introducing exciting and [innovative] products and services in the next few months,” Perez-Agudo said.
The company said the ballooning inflation caused car manufacturers and distributors to moderate their sales expectations. The car dealer believes the implementation of the TRAIN law influenced the way consumers buy things, as they are still adjusting to the new tax regime.