Business Business News Supply woes stunt Hyundai growth
Supply woes stunt Hyundai growth
- Details
- Published on Friday, 14 December 2012 00:00
- Written by IRMA ISIP
By A Web design Company
Growth of Hyundai sales in the Philippines is stunted by supply problems due to production changes in its plants worldwide. Shortages are expected to persist until mid 2013.
Yet Fe Perez-Agudo, president and chief executive officer of Hyundai Asia Resources Inc. (HARI), expects a 5 to 10 percent growth next year as more products get launched in the market.
Agudo said HARI is expected to end the year with 23,000 units sold , up 21 percent from 2011.
But Agudo said HARI could have grown by 50 percent this year had it not been for the supply problems experienced by some of its most successful models Starex, Tucson and Elantra.
Agudo said the new product launches of the Sta. Fe and the new hatchback Accent diesel would again trigger another supply shortage.
“Every time (a new product) is launched, and is picked up in the United States and Europe, the general market which includes Asia-Pacific immediately feel the shortage,” Agudo said.
Though no particular geographical location is hit most, Agudo said the shortage is a global thing.
“We could have grown 50 percent,” said Agudo when asked what would have been this year’s growth.
Agudo said the shortage would continue until next year because of the realignment of production lines are expected to be finished by the end of the year.
“This will help stabilize and nd normalize supply level by the middle of 2013,” said Agudo.
But despite this, Agudo said HARI is still positive it will have strong growth in 2013 in as much it has newly launched products which includes the Sta. Fe, the hatchback diesel Accent while the Eon is still very fresh and in demand.
Agudo said market favorite Starex has not lost its luster.
“Given this product mix, conservatively we can grow 5 percent (in 2013) but I’d like to be aggressive and say that the 10 percent is achievable,” said Agudo.
“We are very much satisfied with our performance given strong support of our dealer networks. The strong economic fundamentals support the robust performance of the industry as a whole. And next year, with a strong peso, low inflation and econimic stability given all these factors, 2013 would still be a positive year,” she added.
All Hyundai vehicles sold by HARI are sourced from South Korea, except the i10 and the Eon, which are imported from India.
