Kia Philippines Is in a Good Spot As It Braces for Leadership Change

To illustrate just how much Kia has grown over the last few years, consider the numbers. In 2018, the Korean automotive sold a total of around 2,238 units, for a total market share in the Philippines of .56 percent. The brand was at 14th place in a sales ranking of all car brands sold locally; it had actually sold less in 2018 compared to 2017 (when it moved 5,186 units). In terms of dealerships, Kia had around 40 that year. 

Then, in December 2018, Kia found a new distribution partner in the Ayala Group’s AC Motors. Appointed to head the new Kia Philippines was Ayala Group stalwart Manny Aligada, who saw the tough road ahead of him.

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“We recognized the market sentiment at the time,” he tells Esquire Philippines. “People thought, ‘Ah mahina yan, walang pyesa. Mahina after-sales service diyan.’”

By January 2019, Kia Philippines was relaunched in the Philippines under Ayala and the new group got to work reintroducing the brand to Filipino consumers.

Five years and several new model launches later, Kia is in a much better position. The brand sold 5,012 units in 2022, very near its 2017 sales record and 123 percent up from its 2018 number. It also more than doubled its market share to 1.35 percent, good enough for the brand to enter the top 10 biggest-selling car brands in the country, at 10th place.

“As of end of this year, we’re inching closer to 6,000 (unit sales),” Aligada says. “That’s a goal we’re working to achieve.” 

Kia now also has 46 dealers nationwide and is looking to open at least four more by next year to bring the total to 50.

“We think 50 is a sweet spot,” Aligada adds. “Kasi once we have located them well, we want to make them grow where they are. Then we can get them to work on their territories."

Outgoing Kia Philippines president Manny Aligada and incoming COO Brian Buendia

Photo by Kia Philippines.

Kia is just one of the dozens of car brands jockeying to get a bigger slice of the automotive pie, now that growth seems be back on the upswing after the pandemic. Total vehicle sales as of 2022 was at 370,000, up 26 percent from 2021’s 293,000. The Korean brand itself is looking to achieve double digit full year growth this year.

In fact, from January to May this year, Kia reported sales of 2,100, led by its subcompact SUV, the Stonic (1,107 units), followed by the Soluto (394 units), and its commercial truck the K2500 (340 units).

The brand seems to be doing something right. According to Aligada, the Philippines is the brand’s leading independent dealer in Asia Pacific in terms of sales.

“We may not be there in terms of ranking yet, but at least we represent the brand pretty well,” he says.

Aligada maybe have had a few things to say about the brand, but the sixtysomething executive is retiring by the end of the month and is handing the reins of the company to someone new. Kia Philippines had a sendoff event for Aligada last week, which was also an opportunity to introduce the company’s newly appointed Chief Operating Officer (COO) Brian Buendia, a career automotive professional who has been with AC Motors since 1998.

The team also took the opportunity to tease the arrival of four new models in its lineup by next year. Two of the models will be its so-called new energy vehicles (NEV), or its parlance for electrified vehicles, while two will still carry internal combustion engines.

Kia had already introduced its first fully electric vehicle, the EV6, earlier this year.

“Kia Philippines is already a major player in the local industry as well as in the region,” Buendia said. “Kia Philippines became one of the fastest-growing car brands locally and was also recognized by Kia Asia Pacific (K-APAC) for achieving the highest growth rate in the region, as well as being the number one independent distributor in retail sales in 2022. I will build upon these accolades to further steer Kia Philippines to greater success.”