ACMobility to transition out of Honda retail sales
There is no question that Honda Cars Philippines hasn’t been its former self as of late.
The company which had once been the beacon of what a Japanese car should be and the pride of many car enthusiasts in the country has been jogging in place for the last few years. They haven’t been driving forward in terms of sales, especially when faced with newer competition from fellow Japanese brands, as well as much more affordable competitors from China.
It was only a matter of time before we see more dealership closures, as dealers have to be profitable in order to keep the lights on. Now Honda is losing a big group: Ayala.
Recently Ayala’s ACMobility announced they were getting out of the Volkswagen (SAIC, really) game, but it seems Ayala will also close the book on the company’s retail operations as a major dealership network for Honda automobiles in the country. In a press release, Honda outlined the “transition” of Ayala out of the Honda dealership network.
Ayala actually has the distinction of being the first Honda automobile dealership in the Philippines when they opened Honda Cars Makati in 1990. Since then, ACMobility (through Iconic Dealership, Inc.) has become the largest operator of Honda automobile dealerships with nine dealerships nationwide: Honda Cars Makati, Honda Cars Pasig, Honda Cars Shaw, Honda Cars Bacoor, Honda Cars Cebu, Honda Cars Mandaue, Honda Cars Iloilo, Honda Cars Negros, and Honda Cars Cagayan de Oro.
No explicit reason was given for Ayala opting out of the Honda dealership game, but ACMobility CEO Jaime Alfonso Zobel de Ayala did mention in the announcement that the decision is about letting them “focus on new growth areas”. If we were to read into it, we can infer that ACMobility want to focus on their two growing brands: BYD and Kia.
In the last 15 years, HCPI has had to weather all kinds of issues. The 2011 Tohoku earthquake and floods in Thailand hit their model availability. The Takata airbag recall harmed the brand’s reputation. The manner of the closure of Honda’s assembly line in Laguna was a rather bitter chapter.. But perhaps the greater issue is the overly ambitious pricing of many of their models, especially when considering the changing landscape of the local market with many new Chinese models.
As mentioned, the pattern of Honda sales in the last few years is the equivalent of jogging in place, averaging just 14,095 units per year from 2020 to 2024. Last year, Honda actually experienced a dip of 6.77%, while ACMobility’s Kia sales grew 32.96% and the BYD grew by 890%.
IDI will continue to operate these dealerships until December 31, 2025. On January 1, all of these dealerships will officially be under new operators, as Honda promises a seamless transfer to prevent any interruptions in terms of sales and aftersales service.
As to which companies will pick up Ayala’s Honda dealerships, we are not quite sure. But we won’t be surprised if we see the usual companies snap them up as a turnkey dealership can be quite attractive for already established dealership networks looking to expand. If we were to venture a guess, Gateway will be one of the likely candidates as this group has been expanding and acquiring other dealerships nationwide.
And the interesting bit is that while ACMobility is letting go of their Honda automobile dealerships, the company (or its parent) will likely be retaining its stake in Honda Cars Philippines. The last number we can find is that the company owns about 12.9% of HCPI.
Author: Vince Pornelos
Source: Ayala letting go of all its Honda auto dealerships
Disclaimer: This article contains information sourced from publicly available reports, official statements, and reputable news agencies. Proper credit has been given to original authors where applicable. Any direct quotes or references have been attributed accordingly.