Hyundai Eyes Philippines For Car Assembly

Korean car maker Hyundai is considering the Philippines as its new location for car assembly or car parts manufacturing, Hyundai Asia Resources Inc. (HARI) President and CEO Ma. Fe Perez-Agudo told reporters on Thursday.

At the sidelines of the 2016 Manila International Auto Show (MIAS), Perez-Agudo said Hyundai is reviewing its business strategy for Southeast Asia which will involve investments and complementing the assembly in the region.

“(We’re) reviewing not only investments but possible complementation assembly in ASEAN because there will be a swapping of products in terms of complementation,” she said.

She added that one of the strategies that the company is looking at is putting up a manufacturing plant in ASEAN which can also serve as source for Hyundai vehicles for the entire region.

When asked if the Korean car firm eyes investments for manufacturing in the Philippines, Perez-Agudo said, “We’re getting there. But as I’ve said, we are currently reviewing the strength, the business strategy of Hyundai not only in the Philippines but for the entire ASEAN”.

After China, the Philippines is the strongest partner of Hyundai in ASEAN, according to the president of HARI — the exclusive distributor of Hyundai vehicles in the country.

She mentioned that HARI target sales for this year is at 35,000 units, a 15-percent growth from last year’s sales at 22,058 units.

Hyundai is benefitting from the ASEAN-Korea Free Trade Agreement which cuts tariff of Korean cars imported to ASEAN markets from 25 percent to 5.0 percent, making Korean-made cars more competitive in the region. (PNA) RMA/KMC