Kia PH relaunch set in Jan., aims 10,000 unit sales in 2019
Published Dec 17, 2018 12:00 am
By Bernie Cahiles-Magkilat
Kia Philippines, the latest addition to Ayala Corporation’s growing AC Automotive portolio, aims to sell more than 10,000 units in 2019 to turn around the company’s performance back to its peak in 2015.
Manny Aligada, president of Kia Philippines
Manny Aligada, president of Kia Philippines, told a media roundtable they are hoping to corner a 2 percent market share out of its 10,000 sales level target for 2019 from the current less than one percent market share.
Aligada said it will implement strategies in 2019 to stabilize the brand and business by working together with the other AC Automotive brands.
To kick off this brand image building, AC Automotive, Ayala Corporation's automobile business company operating under AC Industrials (ACI), will officially relaunch the Kia brand in the Philippines on January 30, 2019 with the introduction of three new Kia models.
This will beef up the company’s existing 9 model lineup, where 60 percent of sales are in the critical segment or the lower-end market for small cars.
It is concentrating in the value for money segment or the small cars. Its Picanto model led the models with 18 percent share of total volume.
According to Aligada, their product line-up will concentrate on the price point and the features of the vehicle to come up with a good story.
Aligada said they are also looking at participating in the commercial vehicle segment where they can make a big impact and depending on market requirement.
The relaunch will be followed by a series of brand image building and communication activities to strengthen Kia’s image in the local market as a reliable brand.
“Kia is known for its reliability and we want to duplicate that,” said Aligada.
In addition, Kia will strengthen its distributorship network of 37 outlets of which 10 are in Metro Manila and the rest in the provinces.
The strategy is to expand existing dealers and open new ones in strategic areas. Aligada, however, said that the biggest potential still lies in Metro Manila as it accounts for 60 percent of total sales.
The third strategy is to introduce competitive financing packages to drive sales and to address entry barrier.
Aligada said they will not put up its own auto financing venture, but will be working closely with existing financing and bank partners.
Kia will also apply new concepts to incorporate digital and next generation capabilities to align with future market requirements.
“It appears that the direction is towards electric cars and Kia has a platform in that so we make sure we have standards for that,” he said.
They will also be boosting its manpower capabilities and processes “to make sure we are in the game.”
“We have programs to develop people capabilities and Kia organization and dealers to represent the brand with enhanced systems and processes and build representation with fleet accounts and customers,” said Aligada.
“We are looking forward to the improvement in sales,” said Aligada as he expressed confidence that the market has already been able to adjust following the imposition of higher auto taxes, which was blamed for the decline in sales this year.
Aligada also said that while they are looking at putting up a local assembly operation of Kia in the future, this decision will largely depend on the Kia headquarters in Korea. At present, all Kia models are imported from Korea.
Aligada stressed that efforts to revive Kia in the Philippines have the full support of the Ayala Group’s resources stressing that “when we decide on a brand we appropriate resources to make to make it succeed.”
Eventually, the objective is for Kia to have a significant contribution to the AC Automotive Group.
Kia started operating in the country in 2003. It used to be an original member of the government’s People’ Car program with its Kia Pride model.
Under the Columbian Autocar Corp. of the Alvarez group, Kia attained its biggest market share of 4.1 percent in 2012 and peaked sales at 10,010 unit level in 2015 with 3.1 percent share of the expanding Philippine auto market. CAC has only a minority shareholdings in Kia Philippines.
Sales dipped from then on. As of the first quarter this yesr, Kia sold 2,400 units for 0.6 percent market share.
Aside from Kia, the AC Automotive’s auto brand porfolio where the company has direct control include Volkswagen, KTM and Maxus of China. Other brands where the group has minority shareholdings include Honda and Isuzu.
Manny Aligada, president of Kia Philippines
Manny Aligada, president of Kia Philippines, told a media roundtable they are hoping to corner a 2 percent market share out of its 10,000 sales level target for 2019 from the current less than one percent market share.
Aligada said it will implement strategies in 2019 to stabilize the brand and business by working together with the other AC Automotive brands.
To kick off this brand image building, AC Automotive, Ayala Corporation's automobile business company operating under AC Industrials (ACI), will officially relaunch the Kia brand in the Philippines on January 30, 2019 with the introduction of three new Kia models.
This will beef up the company’s existing 9 model lineup, where 60 percent of sales are in the critical segment or the lower-end market for small cars.
It is concentrating in the value for money segment or the small cars. Its Picanto model led the models with 18 percent share of total volume.
According to Aligada, their product line-up will concentrate on the price point and the features of the vehicle to come up with a good story.
Aligada said they are also looking at participating in the commercial vehicle segment where they can make a big impact and depending on market requirement.
The relaunch will be followed by a series of brand image building and communication activities to strengthen Kia’s image in the local market as a reliable brand.
“Kia is known for its reliability and we want to duplicate that,” said Aligada.
In addition, Kia will strengthen its distributorship network of 37 outlets of which 10 are in Metro Manila and the rest in the provinces.
The strategy is to expand existing dealers and open new ones in strategic areas. Aligada, however, said that the biggest potential still lies in Metro Manila as it accounts for 60 percent of total sales.
The third strategy is to introduce competitive financing packages to drive sales and to address entry barrier.
Aligada said they will not put up its own auto financing venture, but will be working closely with existing financing and bank partners.
Kia will also apply new concepts to incorporate digital and next generation capabilities to align with future market requirements.
“It appears that the direction is towards electric cars and Kia has a platform in that so we make sure we have standards for that,” he said.
They will also be boosting its manpower capabilities and processes “to make sure we are in the game.”
“We have programs to develop people capabilities and Kia organization and dealers to represent the brand with enhanced systems and processes and build representation with fleet accounts and customers,” said Aligada.
“We are looking forward to the improvement in sales,” said Aligada as he expressed confidence that the market has already been able to adjust following the imposition of higher auto taxes, which was blamed for the decline in sales this year.
Aligada also said that while they are looking at putting up a local assembly operation of Kia in the future, this decision will largely depend on the Kia headquarters in Korea. At present, all Kia models are imported from Korea.
Aligada stressed that efforts to revive Kia in the Philippines have the full support of the Ayala Group’s resources stressing that “when we decide on a brand we appropriate resources to make to make it succeed.”
Eventually, the objective is for Kia to have a significant contribution to the AC Automotive Group.
Kia started operating in the country in 2003. It used to be an original member of the government’s People’ Car program with its Kia Pride model.
Under the Columbian Autocar Corp. of the Alvarez group, Kia attained its biggest market share of 4.1 percent in 2012 and peaked sales at 10,010 unit level in 2015 with 3.1 percent share of the expanding Philippine auto market. CAC has only a minority shareholdings in Kia Philippines.
Sales dipped from then on. As of the first quarter this yesr, Kia sold 2,400 units for 0.6 percent market share.
Aside from Kia, the AC Automotive’s auto brand porfolio where the company has direct control include Volkswagen, KTM and Maxus of China. Other brands where the group has minority shareholdings include Honda and Isuzu.