Volkswagen reestablishes presence in Phl market

MANILA, Philippines - Returning German automotive brand Volkswagen is looking to reconnect with the Filipino consumer market amid the country’s rising demand for vehicles.

In a press conference, Volkswagen president for commercial operations of Greater China and the ASEAN Weiming Soh said the firm decided to come back to the Philippines citing the country’s growing demand for vehicles.

“Our come back to the Philippines is important to us. The car industry is growing here,” he said.

The Chamber of Automotive Manufacturers of the Philippines Inc. expects total vehicle sales to hit 210,000 units this year.

With more than half of the middle income individuals who will be buying cars expected to come from China and ASEAN including the Philippines, Soh said reestablishing Volkswagen’s presence here is timely.

Ayala Automotive Holdings Corp. president and chief executive officer John Philip Orbeta told reporters in the same event that as the market is growing, it is necessary to offer consumers more choices.

“We are targeting really the car consumer that will aspire for a German car because right now all the German cars (sold here) are luxury,” he said.

“We believe Volkswagen coming in will offer them aspirational point that they can own German car... that is safe, reliable and that looks good at affordable prices,” he added.

Automobile Central Enterprise, Inc.(ACEI), a wholly-owned subsidiary of Ayala Corp., has been appointed as the official distributor of Volkswagen cars in the country.

ACEI’s first dealership which is located in Bonifacio Global City, officially opened on Saturday.

By next year, the firm intends to have six dealerships.

Orbeta said the firm is looking to open dealerships in Manila, Cebu, Quezon City as well as Alabang.

Volkswagen vehicles being sold here are the Jetta sedan, the Touran MPV as well as Tiguan and Touareg sports utility vehicles.

Orbeta said that while they have received several inquiries on Volkswagen’s vehicle offerings, they have yet to set a target for sales.

“We have not really set volume targets but we do hope to be a volume brand,” he said.

With the official launch of the brand and opening of the first dealership, the firm expects to have regular shipments of all vehicle offerings.

The Volkswagen Group operates in 104 production plants around the world, with more than 550,000 employees producing more than 37,700 vehicles per day.

The Ayala Group is a key player in the automotive industry, as Ayala Automotive Holdings has interests in Honda Cars Philippines Inc. and Isuzu Philippines Corp.