Hyundai Going For A Big Chunk of Philippines!

And X-1R is helping it.

The ASEAN Automotive Federation has recently published vehicle sales data for January to February 2014, and despite the Philippines’ automotive industry lamenting the fact that it lags behind in sales and production compared to its neighbours – namely, Thailand, Indonesia and Malaysia – the country has shown a robust performance in the first two months of 2014.

While vehicle production numbers remain small, there has been an encouraging 21.4% year-on-year growth for sales of motor vehicle and 21.3% growth for sales of motorcycles and scooters. Meanwhile, Thailand, Indonesia and Malaysia has experienced insignificant increases and, in fact, some startlingly steep decline, especially due to the political instability in the Kingdom – a very stark but not wholly unexpected 45.2% drop in motor vehicle sales (see also: Thailand Leads Car Sales In SEA).

The Philippines has a sizeable population of 99 million while car ownership is still barely saturated – only 30 motor vehicles to every 1000 people, recorded in 2010, a ratio that is much lower than the other three above mentioned countries. These numbers suggest the potential for much growth.

Revenue from after-sales service is remarkably important, perhaps even more important, than new vehicle sales (read: Consumer Sentiments During Challenging Times). After-sales service brings in repeat and regular customers, while vehicle sales may not. While price may remain the determining factor in the average Filipino’s purchasing decision, between two marques with similar price range, the reputation for quality after-sales service may just be the coup de grace to defeat the competitor.

Alfredo Jose Jr (left) and Harold Ledda (right)
at the signing ceremony

Our Philippine correspondent, Harold Ledda, who is also X-1R Philippine Country Manager, recently updated us on efforts made by one of the leading automotive brands in the country to differentiate their after-sales service from the rest. Hyundai is the third largest automaker in the Philippines in terms of vehicle sales volume and has 43 franchised car dealerships across the country. In an unprecedented move, Hyundai Asia Resources Inc (HARI), the distributor of Hyundai vehicles in the Phillipines, and CreativeSparx Inc (CSI), X-1R’s Philippine product distributor, signed a two-year supply and distribution agreement for the sale of X-1R Engine Treatment, co-branded as ‘HFT Engine Treatment’. The HFT will be sold exclusively in Hyundai service centres.

At the signing ceremony, Engr Alfredo Jose Jr, Hyundai’s Vice President for Quality Assurance and Process Enhancement, said, “This is a mutually beneficial undertaking. We at Hyundai, the most aggressive and fastest selling car brand in the country, will distribute now a globally superb quality product, X-1R.”

When competition is rife, resources are scarce and the market is limited, automotive players have to leverage on each other’s competitive advantages to progress (read: An Automotive Love Triangle). Total Hyundai vehicle sales in 2013 was 22 033 units, which was about half the volume of the second largest automaker in the Philippines, Mitsubishi. This new partnership with X-1R is part of the earnest effort that HARI is making to close the gap with its rival this year. For X-1R, the intention is to use this move as a stepping-stone to enter into partnership with Hyundai in other countries.

Ledda, who was also present at the ceremony, said, “The marriage of two top-quality and aggressive brands has now been ‘solemnized’ and there is no divorce in the Philippines, so this is for good. Let the honeymoon begin.”

Click here for the Endorsement Letter : HFT Engine Treatment


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