Sales of Kia vehicles doubled in 2019
Kia Philippines more than doubled its vehicle sales last year from 2018 levels.
The company last year sold 5,019 units of Kia vehicles, now distributed by the Ayala Group, up 124 percent from the 2,238 units sold in the previous year.
It initially targeted to sell 10,000 units last year but later cut it by half given the stiff competition in the market. Nonetheless, the 2019 performance was still a big improvement from the previous year’s level.
“We are pleased with the strong performance of Kia Philippines in 2019,” said company president Manny Aligada.
“As we enter 2020, Kia Philippines looks forward to surpassing its record with new vehicle introductions, the opening of new dealerships, and better after-sales services,” he added.
In November last year, Aligada told reporters that he was targeting to sell at least 8,000 units in 2020, or at best, 9,000 units, which would take the company closer to its original target for 2019 of 10,000 units.
The industry has been slowly recovering the momentum it lost in 2018, when inflation was hitting record highs, dampening demand for new vehicles. The increase in the excise tax on cars further aggravated the situation.
But Kia’s problem was not just about those. Prior to Ayala’s intervention, the South Korean brand did not have any financial support from big banks in the Philippines, keeping the previous distributor of the brand from using loan or financing packages as a way to win new customers.
Back in 2017 or prior to the increase in excise taxes on vehicle, the industry saw a significant growth in sales but Kia did poorly, posting sales of only 5,186 units or 29 percent lower than its 2016 sales.
The company has been recovering its sales momentum under Ayala’s leadership.
“If I hit the 9,000 unit sales mark [in 2020], my shareholders would be very happy. [But the] realistic number is about 8,000 units,” Aligada said last year.