Ayala Corporation to distribute Kia vehicles in the Philippines

  • Dec 06, 2018

MANILA: Kia, the South Korean automobile manufacturer hasn’t been doing so good in the Philippines lately. With a decline of 29% in total sales during 2017, the automaker was certainly due for a major overhaul in its strategy. To make amends, Kia has come up with an agreement which gives the authority of controlling the manufacturer’s operations in the country to Ayala Corporation.

Kia Cars

In 2017, where the auto industry has grown in leaps and bounds in the Philippines, Kia has had a different story altogether. The Korean brand could only sell 5,186 throughout the year and the shift taken was quite evident even before it happened. Ayala Corporation will now replace the Columbian Autocar Corporation (CAC) and become the official distributor of the brand’s automobiles in the country. However, the CAC will still be a part of the picture, with the major stakeholder being the Ayala Corporation, which comes under AC Industrials.

Ayala Corporation

The officials from the Ayala Corporation have asserted that the brand is currently going through a “comprehensive transition”, and January 2019 will see the relaunch of the brand in the Philippines.

Kia & Ayala Corporation Officials

The agreement with the Ayala Corporation should be a good indication of what the future holds for Kia in the country. Reason being the sheer experience Ayala Corporation holds in the Philippines automobile industry. The AC Industrials, the parent of the Ayala Corporation, holds 15% shared of the Isuzu Philippines Corporation and 13% of Honda Cars Philippines. Along with being stakeholders, the corporation also operates 11 Honda and 9 Isuzu dealerships across the country. Also, not only AC Industrials are the official distributors of brands like Volkswagen and KTM in the Philippines, but the assembling of a few KTM models is also taken care of by the veteran automotive professionals. In the Philippines, the Kia lineup currently features the likes of Sorento, Sportage, Picanto, and others.


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