Volkswagen leaves Philippine market after 13-year partnership

Volkswagen is officially exiting the Philippine automotive market, with its distribution partner Automobile Central Enterprise Inc. (ACEI), a unit of the Ayala group, ending their agreement.

Volkswagen BGC will continue its operations until September 30, 2025, after which its services will be available at designated service centers in Alabang, Cebu City, and Pampanga.

While the exact reasons for the partnership's termination were not disclosed by either Volkswagen AG or ACEI, industry sources attribute the decision to poor sales.

These sources also suggest that a shift in consumer preference towards hybrid and electric vehicles has impacted Volkswagen's market performance in the Philippines.

The Ayala group, for instance, has seen significant growth with the Chinese electric vehicle brand BYD within its automotive portfolio.

The partnership between Volkswagen and Ayala, which began in October 2012, spanned 13 years.