Granted being the 3rd industry player in the Comprehensive Automotive Resurgence Strategy (CARS) program, Hyundai Asia Resources Incorporated (HARI) will invest up to P5 Billion within a span of 5 years to locally assemble its Korean-made automobiles.
HARI is the official distributor of Hyundai vehicles in the Philippines with growing nationwide stronghold of 42 dealerships.
“We have already earmarked a P5 billion investment for the next five years for the assembly operations in the Philippines.” HARI President and CEO Ma. Fe Perez-Agudo told reporters during the annual Manila International Auto Show 2018 at the World Trade Center.
Committed to delivering government and industry standards, Agudo said that the assembly plant currently located in Laguna shall initially produce 1 model this year prior to adding new models in the production line for the coming years.
“We would have our pilot assembly on May 14. We will run the full CKD (Completely Knocked Down) operations by June 1 and commercial production by September,” Agudo said.
The pilot assembly set next month is expected to produce the first 15-30 vehicles to be used for testing purposes and another 3,000 – 5,000 more units of the same model to be sold, initially for this year starting September.
“This will have all the important processes from welding to painting, among others, and the assembly of about 1,800 parts, both big and small, in one place,” she added.
The Laguna plant would then be able to increase capacity of up to 50,000 units annually within 4 years’ time.
Hyundai aims to sell 42,000 units or more this year, 10% more compared to last year with earlier announcement that it plans to register 2 models such as EON and the H350 variants under the CARS program.
The CARS program is a P27 Billion incentive package made available to 3 Major Automotive Players in the country (Hyundai included) that have the forecasted capacity to locally produce a total of 600,000 units in 6 years.