Hyundai Asia Resources, Inc. (HARI), the official distributor of Hyundai vehicles in the country displayed bullish growth for the first three months of 2016. Ending the first quarter with 7,469 units, HARI's sales grew by 39% compared to the 5,364 units sold in the first quarter of 2015. Quarter-on-quarter results also show good results in automotive sales as the company also posted an identical 39% growth.
The Passenger Cars (PC) segment surged by 42% or 5,186 unit in the 1st quarter as compared to the 3,653 units sold in the same quarter of 2015. Light Commercial Vehicles (LCV) contributed substantially with 33% growth compared to the same period of the previous year. In total, LCV sales during the 1st quarter is at 2,283 units. On the other hand, quarter-on-quarter results show a 23% pick up in sales for PC and a 99% increase for LCV.
In the future, HARI claimed that the local automotive industry will benefit from the upcoming election spending. Last year, the country's GDP grew by 6.3% in the 4th Quarter, and 5.8% for the full year of 2015. Although a tad lower than projected growth by the IMF and World Bank, the Philippine economy still emerges as one of the top performing economies in the ASEAN. In the future, HARI claimed that the local automotive industry will benefit from the upcoming election spending and additional public-private partnership projects (PPP). Economic expansion for 2016 is estimated to be at 6.4%.
The local automotive industry will likewise benefit from the overall scenario as auto-buying intentions are expected to be upbeat, given the low and manageable inflation, improving employment rates, and greater disposable income.