Kia locks in decade deal

Kia Philippines has renewed its partnership with Kia Corporation, extending its distributor agreement to cover a full ten years. The signing took place in Seoul on 18 March, with executives, dealers, and bank partners present.

This marks the longest commitment the brand has made in the country and follows a strong performance in 2025 that gave Kia added momentum in the local market.

The Philippine automotive industry grew by 3.7 percent in 2025, while Kia recorded a 16.7 percent increase in sales during the same period. The difference shows that the brand moved at a faster pace than the overall market.

Models such as the Sonet, Carnival Turbo Hybrid, and Sorento Turbo Hybrid helped drive that growth. The Sonet attracted younger buyers, while the larger models appealed to families who needed space and better fuel efficiency.

The brand also saw a shift in how it is viewed. Customer interest increased, and more buyers began to consider Kia as a practical option. This translated into actual purchases and helped expand its presence in different segments.

Kia Philippines operates under ACMobility, part of the Ayala Group, which took over the distributorship in 2018. Since then, the company has worked on strengthening its lineup and improving customer support.

The extended agreement supports Kia’s global direction toward electrified vehicles while maintaining a mix of options in the local market.

The company plans to grow its hybrid offerings and confirmed the arrival of the EV5, which will add a fully electric model to its lineup.

The brand will continue to offer gasoline models alongside hybrids and electric vehicles. This approach gives buyers more flexibility based on their needs and driving conditions.

Kia also plans to improve after-sales services as its customer base grows. The focus includes parts availability, maintenance, and overall ownership experience.

“This partnership extension represents a long-term commitment to the Filipino drivers who have embraced the Kia brand,” Jaime Alfonso Zobel de Ayala, CEO of ACMobility, said.

“Our growth proves that Filipinos are looking for the kind of purposeful innovation that Kia provides, and we’re excited to keep that momentum going,” Zobel de Ayala added.

“Our growth is driven by the vibrant community of Filipinos who have made Kia a part of their story, from families sharing journeys in the Carnival to young professionals finding their start in the Sonet,” Jay Lopez, managing director of Kia Philippines, said.

“This ten-year milestone is a commitment to continue growing this community by offering a lineup that understands the local road as we expand into the hybrid segment and bring innovative mobility to the hearts of our customers.”

Kia has around 40 dealerships across the country, which support its operations and help it reach customers beyond major urban areas.

The extended agreement gives the company time to continue its growth and respond to changes in the market. Kia remains committed to the Philippine market, with plans to stay active and visible on local roads in the years ahead.