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between 1.5-1.6 liters rising by 5%, while SUVs larger than
2.0 liters climbed up 27%.
The decline in overall market sales was reflected in GB
Auto’s performance and results for FY15, especially since
the bulk of the company’s sales falls within the 1.3-1.6 liter
range. GB Auto’s Passenger Cars division saw total volumes
and revenues drop by 14.6% and 3.4% y-o-y respectively
during the year, affected by weaker market demand coupled
with difficulties in sourcing foreign currency due to a na-
tional shortage.
The effects of the foreign currency shortage were particu-
larly accentuated during the fourth quarter of 2015 and had
a direct and severe impact on GB Auto’s ability to finance
imports and restock its inventory. Across all its brands, GB
Auto held a total market share of 26.8% (including Hyun-
dai, Geely Emgrand, andMazda), 3 percentage points below
FY14’s share of 29.8%.
Hyundai continued to outperform during FY15, capturing a
total market share of 22.2% during the year and contribut-
ing c.52.4% of the LOB’s total revenues. The brand’s CBU
sales increased by 4.8% y-o-y, while CKD sales declined by
11.7% over the same period, hindered by disruptions in as-
sembly operations due to FX challenges.
2015 also sawMazda sustain its upward trend, with sales vol-
umes increasingmore than twofoldover the course of the year
to reach 1,937 from 823 units in the year prior. Meanwhile,
Geely’s CBU sales volumes increased by 12.7% over the
same period, as CKD sales fell by 61.6%. Since its launch, GB
Auto has sold over 30,000 units of Geely’s Emgrand 7 model.
However, sales during 2015 declined due to a negative social
media campaign, which the company dealt with decisively
by obtaining third-party quality certifications that proved the
erroneousness of the claims made on social media.
The Passenger Cars After-Sales division posted impressive
20 | GB Auto |
2015
Our Business Units and Brands