KIA Philippines is taking a more optimistic outlook on the automotive industry, forecasting a much smaller decline of 35 percent versus 40 percent of other forecasters.
In an online press briefing, Kia Philippines president Manny Aligada said the company is confident the industry could hit 275,000 units in sales this year, higher than the 240,000 to 255,000 unit forecast from other industry sources. That is down 35 percent from 417,000 units in 2019 and from 420,000 units originally set for 2020.
Aligada said from their lowest in April, sales began picking up in May as the lockdowns eased but five-month sales were still down 50 percent.
Aligada said Kia is confident there are opportunities for certain segments of the automotive market, such as those used for logistics and personal mobility.
“Pre-lockdown, the industry was selling more than 30,000 each month. We hope to see close to normal levels towards end of the year,” Aligada said.
“While general numbers are dropping, if you look at other industries, they are beneficiaries to situation People want ease of movement.
Movement of goods is critical for small and medium created out of the pandemic
There will be opportunities from fast-moving consumer goods, pharmaceuticals,” Aligada said.
But Aligada said banks have become more strict in screening consumers seeking financing that leads to longer waiting time.
“The way banks are handling applications now, they have to scrutinize every applicant and make sure they are employed and will be employed for the term of the loan he is applying for; and if the industry or company (the applicant is from) is also being (considered). That is a growing concern. But it is a managed concern ,” Aligada said.
Kia is encouraging those that are able, to buy in cash and avail of huge discounts such as those it currently offers.
Aligada is also confident Kia would be able to maintain its market share of 1.2 percent and may even 1.4 percent if the best-case scenario of 275,000 is hit and nearer 2 percent if the industry gets back to 300,000 units in sales next year.
At best, Kia will perform better than the industry with a 20 percent decline to 4,000 units this year from 5,019 sold in 2019.
Kia is bullish that it is adding an 11th model in its lineup in the fourth quarter and is opening four more dealers this month in addition to its existing 30.
Aligada said it will end 2021 with 38 dealerships by 2021.
