Volkswagen and Ayala have officially ended their partnership after 12 years

We saw it coming, and it has finally happened. The Volkswagen brand faces yet another uncertain future in the Philippines with its local distributorship dropped by Ayala Corporation subsidiaries Automobile Central Enterprise, Inc. (ACEI) and ACMobility.

This development comes 12 years after the German automaker, under Volkswagen AG, one of the largest automotive companies in the world, re-entered the Philippine market in 2013 through AC Motors, now known as ACMobility.

With this, the brand’s last operating dealership, Volkswagen BGC under Iconic Dealership Inc. (another Ayala subsidiary), will be closing its doors this coming September 30, 2025. 

Existing owners will not need to worry though as service centers in Alabang, Cebu, and Pampanga will remain operational. You can read more about these service centers here.

Volkswagen is the third brand to be dropped by ACMobility this year after the Sino-British Maxus brand, which specializes in pickups, SUVs, and vans; and the Austrian KTM and Husqvarna sister motorcycle brands. As such, the Ayala Corporation and ACMobility will now focus more on its present and strong-selling Kia and BYD distributorships.

The brand’s latest presence in the country was definitely eventful, first offering globally-popular models such as the Jetta, Golf and Golf GTS, Tiguan, Touareg, and Passat, and even iconic nameplates such as the Golf GTI, Polo, and the beloved Beetle. The Jetta compact sedan and Golf GTS wagon even gained a fair amount of popularity amongst buyers, and the Tiguan briefly saw its second generation offered locally.

Things changed in 2018 when all those nameplates were dropped in favor of SAIC-Volkswagen manufactured models such as the Santana, Lavida, and Lamando, while the first-generation Tiguan was reintroduced in its long-wheelbase form. 

These came in to take advantage of affordable retail prices thanks to tax breaks for China-sourced vehicles, but unfortunately did not sit well with buyers who wanted the brand’s global nameplates.

Customers gained a bit of hope with the introduction of the global T-Cross nameplate in 2021. While still sourced from China, this was able to compete better with segment rivals with its more modern looks and better packaging. This was then followed by the Tharu in 2023, but sales did not click due to its higher than expected asking price.

It’s currently unclear what Volkswagen AG’s plans are for the Volkswagen brand in the country, whether the brand will no longer be sold in the market once again, or if they will look for a new distributor.

We do hope it’s the latter, especially with the growing demand for electrified and fully electric vehicles in the Philippine market, including for Volkswagen models brought in by gray market importers.

For now, it’s goodbye, Volkswagen.

_{Photos: AC Motors/ACMobility, Volkswagen, Julian Panlilio}