Automotive firms see another breakthrough in sales next year
On the heels of a breakthrough performance this year, the Association of Vehicle Importers and Distributors (Avid) is optimistic of posting another strong double-digit growth in 2016.
Avid president Ma. Fe Perez-Agudo, who is also head of Hyundai Asia Resources Inc. (Hari), told reporters Thursday night the group of importers and distributors is seen recording at least a 30 percent growth in sales next year.
While this could be slower than the expected 55 percent hike in Avid sales for the entire 2015, it would still be better compared to the performance of the entire Philippine automotive industry. Agudo said the industry-wide’s sales were forecast to grow by 22 percent in 2016 from the 310,000 units expected to be sold this year.
According to its website, Avid is an association “pioneered by 11 leading automotive firms representing 20 world-class brands in the Philippines,” including Hari.
Hari, the official distributor of Hyundai vehicles in the country, is also expected to post a double-digit growth next year.
The company, which has already resolved issues concerning vehicle supply shortages, is set to roll out new models that are all Euro-4 compliant. The company has also been adjusting its prices to reflect benefits from the Asean-Korea Free Trade Agreement (AKFTA).
“[For the year] 2015, we just have a 1 percent growth. We didn’t slide, but for 2016, we expect a [double-digit] growth … Our products will be more competitive, as we will have better quality with better technology … Definitely, 2016 will give us more chances of really improving our ranking in the industry,” Agudo said.
Prices of Hyundai vehicles are set to become more competitive, as the AKFTA provides a tariff rate reduction on imported vehicles to 5 percent from the current 20 percent effective 2016.
This new tariff will be equivalent to a reduction of P20,000 to P80,000 from the current retail prices. Hari has already started to implement gradual price reductions.
“There has also been a realignment of pricing during the last three months. We have been quietly adjusting the prices so buyers [from October to December] wouldn’t feel like they were shortchanged,” she said.
Agudo said new models are expected to be introduced to the local market in 2016. “We’re studying the i40 and we’re also looking to launch Genesis. We’re now reviewing the models that are being lined up for global launch. We’re going to carry eight models by the start of the year, and we hope to grow it to 12 by the end of 2016.”
