Ayala unit to distribute Kia vehicles in PH
Conglomerate Ayala Corp. is set to sign a deal on the exclusive distribution of Korea’s Kia vehicles in the Philippines.
A high-ranking source from the Ayala group said the negotiation for the acquisition of the local distributorship rights had been concluded and formal signing was expected to happen soon.
This deal allows the Ayala group—through wholly owned subsidiary AC Industrial Technology Holdings Inc.—to exclusively import Kia vehicles and supply the local dealership network.
About a year and a half ago, Kia Motors’ Asia regional headquarters had ended its distribution deal with the group of Jose Alvarez, but it was allowed to manage one-off inventory.
For the Philippine market, Kia sells sedans, such as Picanto, Rio 5-door, sports utility vehicles and mini vans, such as Soul, Sportage, Sorento and Grand Carnival.
By taking over the Kia distribution business, AC Industrial seeks to expand its automotive businesses.
In 2016, the group consolidated its car dealership and industrial operations into AC Industrials, a wholly owned subsidiary that sought to play a bigger role in manufacturing and contribute to the country’s rise into a Southeast Asian industrial hub.
AC Industrials holds distributorship interests in other brands such as the 13-percent stake in Honda Cars Philippines Inc., the 15-percent stake in Isuzu Philippines Corp. and a 100-percent interest in Automobile Central Enterprise Inc., the official Philippine importer and distributor of Volkswagen. It also has interest in Adventure Cycle Philippines Inc., the official motorcycle distributor of KTM in the Philippines.
Manufacturing operations of KTM AG, the group’s new motorcycle partnership under KTM Asia Motorcycle Manufacturing Inc., are also under AC Industrials.
The Ayala group has also been in discussions with some potential foreign partners for the setting up of car manufacturing operations in the country in the years ahead.
AC Industrials also holds the existing and future assets of global electronics manufacturing service provider Integrated Micro-Electronics Inc.
