Ayala eyes Kia distributorship

MANILA, Philippines — The Ayala group may soon add to its growing automotive portfolio the South Korean brand Kia Motors.

In a disclosure to the Philippine Stock Exchange yesterday, Ayala Corp. (AC) said the group is being considered as the “preferred bidder” to become the new local distributor of Kia in the country.

“We confirm that our wholly owned subsidiary, AC Industrial Technology Holdings Inc., through one of its group companies, has received notice from Kia Motors Asia regional headquarters that it has considered the Ayala group as the preferred bidder to start negotiations for the Kia distributorship in the Philippines,” AC said.

“However, no definitive terms have been reached and

we will make the appropriate disclosure of any agreement reached,” it said.

Kia Motor Corp. is South Korea’s second-largest automobile manufacturer, next to Hyundai Motor Co.

Columbian Autocar Corp (CAC) is the assembler and exclusive distributor of Kia vehicles in the Philippines.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. showed CAC sold 5,186 units last year.

The Ayala group, meanwhile, has consolidated its industrial operations and automotive business under AC Industrial Technology Holdings.

AC Industrial is the official importer and distributor of Volkswagen in the country. It also holds the distributorship stakes in Honda Cars Philippines Inc. and Isuzu Philippines Corp.

In 2016, it also signed a deal with Austria-based KTM AG for the distribution and production of KTM motorcycles in the country.

KTM Asia Motorcycle Manufacturing Inc., the joint venture company, has been approved as a participant under the country’s motor vehicle development program with a P290.6 million investment in assembly operations and parts manufacturing.