After Dropping Other Automotive Brands, the Ayala Group is Betting Big on Kia

Kia Philippines, which is a subsidiary of the Ayala conglomerate’s ACMobility, has renewed its distributor agreement with Kia Corporation of South Korea, extending the partnership for another 10 years. The agreement was signed in Seoul, South Korea last March 18, with company executives, dealer principals, and bank partners in attendance.

The renewal marks the longest partnership term for the Kia brand in the Philippines to date.

ACMobility CEO Jaime Alfonso Zobel de Ayala said the extension reflects a continued commitment to the Philippine market and to Kia customers in the country.

“This partnership extension represents a long-term commitment to the Filipino drivers who have embraced the Kia brand,” he said. “Our growth proves that Filipinos are looking for the kind of purposeful innovation that Kia provides, and we’re excited to keep that momentum going.”

Kia Philippines reported a 16.7 percent increase in sales in 2025, outperforming the overall Philippine automotive industry, which grew by 3.7 percent during the same period. The brand sold an estimated 9,000 to 10,000 units in 2025, up from approximately 7,500 units in 2023 and around 6,000 units in 2022.

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Key models contributing to sales include the Sonet, the Carnival Turbo Hybrid, and the Sorento Turbo Hybrid.

Kia Philippines, which first acquired the Kia distributorship in 2018, has said it plans to expand its electrified vehicle lineup in line with its global strategy. This includes the expected local launch of the Kia EV5, a fully electric vehicle. The company also said it will continue offering a mix of traditional internal combustion engine vehicles, hybrid electric vehicles, and battery electric vehicles. It also said it will enhance after-sales services to support its growing customer base.

AC Mobility’s extension of its partnership with Kia Corporation comes after it ended its deals with other automotive brands in recent years, including with Volkswagen Philippines, Honda Philippines, and Maxus Philippines.

On the flipside, the company seems to be doubling down on its involvement with Chinese giant BYD, which it distributes in the Philippines. As of the end of 2025, BYD had 79 operational dealerships across the country, up from just 25 a year earlier. The Chinese brand, which sells mainly electric and hybrid vehicles, also posted total sales of 26,122 units last year, which is up an impressive 446 percent from the previous year.

In the Philippines, the automotive market is still led by Toyota Motor Philippines, which sold 229,447 units in 2025. Other major players include Mitsubishi Motors Philippines, which sold about 86,000 units sold last year, Nissan Philippines, at around 27,000 units, and Suzuki Philippines and Ford Philippines, each with sales in the mid-20,000 range.

Kia Philippines said the extended agreement will support its operations and product rollout in the country over the next decade.

“Our growth is driven by the vibrant community of Filipinos who have made Kia a part of their story, from families sharing journeys in the Carnival to young professionals finding their start in the Sonet,” said Jay Lopez, managing director of Kia Philippines. “This 10-year milestone is a commitment to continue growing this community by offering a lineup that understands the local road as we expand into the hybrid segment and bring innovative mobility to the hearts of our customers.”