Hyundai investing P1.2 billion to expand Philippine dealership

MANILA, Philippines — The official distributor of Hyundai vehicles in the country is investing P1.2 billion this year until 2020 to expand its dealership and grow its commercial vehicle (CV) business.

Hyundai Asia Resources Inc. (HARI) president and chief executive officer Ma. Fe Perez-Agudo yesterday said the firm is pouring in P1.2 billion to boost dealership facilities, sales and after-sales expertise.

Of the total investment, she said 27 percent would be used to support the CV business, while 73 percent would go to the passenger car (PC) segment.

At present, HARI has 11 dealerships catering to the CV business or for trucks and buses, and 42 dealerships for the PC market.

Building on the track record of HARI’s PC dealerships, Agudo said the firm aims to set up at least 20 dedicated CV dealerships by 2020.

As HARI expands dealerships for the CV business, the company is also aiming to grow sales.

For this year, Agudo said HARI is aiming to sell 1,010 CV units.

To date, HARI has sold 841 CV units.

“We’re looking at achieving 10 percent market share in the next five years and aim to leap forward every five years. We call this our ‘ascent’ strategy. The goal is to be in Hyundai’s Top Five Global Challenge 2020, that is, we want to be counted among Hyundai’s top five global CV players by 2020,” Agudo said.

HARI wants to grow the CV segment given high growth in sales of trucks and buses seen in the country in recent years, with the combined segment rising by an average of 20.8 percent from 2016 to 2018.

“Our venturing into the CV sector is HARI’s renewed expression of commitment to the national growth agenda – creating new business opportunities through our special purpose vehicles, and forging partnerships that aim to provide technology-assisted mobility solutions and transport business models,” Agudo said.

In line with growing the CV business, HARI held the first Hyundai Power Solutions Mobility Expo which puts focus on its trucks and buses in San Fernando, Pampanga yesterday.

During the event, HARI unveiled its entry in the public utility vehicle (PUV) modernization program, the Hyundai Modern Jeepney.

Launched by the government last year, the PUV modernization program aims to promote environment-friendly and more efficient public transport systems to better serve passengers.

Hyundai Modern Jeepney’s unique body design is a product of the collaboration of the University of the Philippines College of Architecture and Interior Design and the College of Engineering, and the technical expertise of Hyundai Motor Co.’s  Research and Development Center in Seoul, Korea.

The vehicle is assembled in partnership with local body manufacturer Del Monte Motor Works Inc.

HARI has initially allocated 800 units of the Hyundai Modern Jeepney  to support the transport requirements of various groups in key regions.

It aims to roll out the first 400 units of its modern jeepneys to partners and key transport cooperatives such as the 11 transport groups that comprise the Public Transport Alliance of General Santos in South Cotabato; the three transport cooperatives from Tanay, Rizal, specifically: Isabela Tourist Transport Service Cooperative, Jordan Transport Services and Development Cooperative, and Amore Transport Cooperative; and the Sapang Palay Minuyan Loop Transport Service Cooperative in Bulacan.

HARI’s target is to have the first fleet of modern jeepneys ply Philippine roads by the first half of next year.

Apart from the Hyundai Modern Jeepney, HARI’s offering in the CV segment includes the Hyundai HD series light-duty and medium-duty trucks; Xcient series or tractor heads, mixers and dump trucks; Super Aero City buses for premium bus operations; Universe buses for luxurious long-distance mass transport with 25 to 50 seats; as well as the County and H350 for small business mobility.