Volkswagen is ending car sales in the Philippines as its Ayala partnership closes this September, but aftersales and warranty services for current owners will continue.
MANILA — Volkswagen is winding down new-car sales in the Philippines as its 12-year distribution partnership with Ayala Corporation comes to a close, confirming weeks of speculation about the brand’s future in the local market.
Ayala’s Automobile Central Enterprise, Inc. (ACEI) announced that it would cease its role as Volkswagen distributor, effectively ending retail operations. The last active dealership in Bonifacio Global City is scheduled to close on September 30, 2025, bringing to an end the German automaker’s current sales presence in the country.
What this means for car owners
Despite the sales exit, Volkswagen emphasized that aftersales service, warranty coverage, and parts support will continue. Service centers in Alabang and Pampanga remain operational, with arrangements being finalized for Cebu and other authorized sites. Current owners are assured that maintenance and technical support “will not be interrupted,” according to notices issued by the outgoing distributor.
Not a permanent goodbye—yet
While the closure halts the availability of new Volkswagen vehicles locally, the automaker has not announced a new distributor or a permanent withdrawal from the Philippine market. Analysts note that the absence of a long-term plan leaves the door open for a possible re-entry under new management.
Volkswagen reentered the Philippines under Ayala in 2013, initially offering German and Mexican imports before shifting to Chinese-built models such as the Santana, Lavida, and Lamando. The brand struggled to capture market share against Japanese and Korean competitors.
Impact on the market
The withdrawal of Volkswagen from showroom sales leaves fewer European brands competing in the mainstream segment, where Japanese and Korean automakers already dominate. While Filipino motorists will lose access to new Volkswagen models after September 2025, the continued availability of service centers ensures that existing owners will not be left without support.
