AC Motors’ multi-brand strength outpaces 2021 industry growth; further expansion eyed

Monday, January 31, 2022

Last January 31, AC Motors, one of the Philippines’ largest automotive groups with its five 4-wheel brands—distributor brands Volkswagen, Kia, and Maxus, and Ayala-owned dealers Honda and Isuzu—celebrated its appreciation night online with members of the Philippine media.

In his welcome remarks, AC Motors President for Automobile Group Antonio “Toti” Zara III thanked the media for the significant role it played in the group’s progress and success, especially during the most challenging times in 2021.

Mr. Zara then shared that AC Motors remained competitive in 2021 by remaining focused on the interests of its customers, and by “riding on the strength, versatility, and adaptability of our multi-brand portfolio.”

Three key elements that enabled AC Motors to remain resilient and at an upward growth in 2021 were revealed:

  • Each of AC Motors’ five 4-wheel brands introduced new models, thereby keeping customer interest and brand awareness moving forward: Maxus introduced the D60; Volkswagen the T-Cross and Multivan; Kia the Sorento; for Isuzu, the D-MAX and mu-X; and for Honda, the  Civic, City, and City Hatchback.
  • Parallel with efforts on the ground, AC Motors brands also went the extra mile in digital, pouring in more resources and expertise towards digitizing customers’ sales and aftersales journeys, resulting in as high as 40% of monthly sales which can be traced back to one of many digital channels.
  • AC Motors continued to increase total dealer network, expanding from 85 outlets in 2020 to 95 in 2021; resulting in sales growth of 30%, outpacing the industry’s 18%.

Building upon these strengths, Mr. Zara remained upbeat that 2022 would see AC Motors continue to grow, and explore even more avenues of opportunity as parent company Ayala commits to a more sustainable future.

Among AC Motors’ more immediate steps for 2022 would be to steadily grow its sales volume, starting off the year with the much awaited launch of the all-new Kia Carnival as well as strengthening presence in the truck market which is recovering faster from the pandemic. Further expansion of network and digitization will likewise continue.

AC Motors is also poised to become a key player in sustainable mobility, as the Ayala group has committed to achieve net zero greenhouse gas emissions by 2050.

To help achieve this goal, AC Motors will actively explore bringing in electric vehicles to the domestic market. “The EV law and its corresponding roadmap is about to be finalized.  Government must consider lowering import duties aside from excise tax privileges. Let us protect strategic sectors such as the PUV but allow easier importation of private vehicles.  We need to make EV ownership more accessible,” Mr. Zara urged.

The future for AC Motors becomes more than about business results. By helping protect the ecology, reducing greenhouse gasses and emissions, it ensures that future generations can live in an environment that helps humanity continue to progress.