Ayala Automotive to hike VW supply in Phl

MANILA, Philippines - The car distributor of Philippines’ oldest conglomerate Ayala Corp. (AC) is increasing the availability of German brand Volkswagen locally.

Ayala Automotive Holdings Corp. is putting up a dealership in Cebu and two more in Metro Manila to tap the unserved markets, an executive said.

“We’re looking at two more dealerships: one in the north in Quezon City and one in the south, in Alabang,” said John Philip S. Orbeta, chairman and president of Ayala Automotive.

Ayala Automotive is also opening its second Volkwagen dealership in Cebu in July, Orbeta said.

The company earlier committed to open six dealerships by 2014. In October, Ayala Automotive opened its main dealership in Bonifacio Global City in Taguig.

Orbeta said to cater to the needs of Volkswagen owners, the company put up a 2,200-square-meter full service center in Sheridan Street, Mandaluyong City.

“We would like to let the people know that Volkswagen is back and we have the full service capability to support the brand,” Orbeta said.

Volkswagen cars were distributed by the Guevara family in the late 1960s and 1970s. The Auto Prominence Corp. took the distributorship until early 2000s.

Early this month, the company launched the all-new Volkswagen Beetle, whose initial production dates back to 1939.

AC’s Automobile Central Enterprise Inc. is the official Philippine importer and distributor of Volkswagen cars like Touareg, Polo, Tiguan, Touran, Golf, CC and Phaeton.

The bullishness of Ayala Automotive comes at a time when car sales are improving in the country. The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) reported that combined sales with the Truck Manufacturers Association Inc. (TMA) reached a record 19,173 units in March, 25 percent higher than the 15,292 units in the same month last year.

For the first quarter, combined sales of CAMPI and TMA climbed to 51,643 units from 42,034 units in the comparable period a year ago. The country’s total vehicle sales reached around 212,000 units last year.

Ayala Automotive has interests in both Honda Cars Philippines, the second-biggest auto assembler in the Philippines by overall sales, and in Isuzu Philippines Corp., a leading distributor of cars, trucks, and engines. Its dealerships also include Honda Cars Makati Inc., and Isuzu Automotive Dealership Inc.

For its part, Germany’s Volkswagen Group is one of the world’s largest automobile manufacturer, with global sales of 8.265 million units accounting for a 12.3 percent share of the passenger car market in 2011. Volkswagen has 99 production plants in 27 countries.