The year 2025 has not yet drawn to a close, but the local carmaking sector has already witnessed seismic shifts that have left some of its biggest players reeling. If one were to describe the current state of the industry, “musical chairs” would be the most fitting metaphor. It is a game that shows no sign of stopping as we head into the new year. We have watched top executives hop from one corporate tower to another, seeking stability even as new car brands continue to sprout like mushrooms after a storm.
The Conglomerate Surprise
Perhaps the most jarring developments came from the industry titans. The sudden closure of Volkswagen in the local scene caught everyone off guard. It was a move no one expected, given that the German heritage brand was distributed by the Ayalas—one of the country’s largest and most stable business conglomerates.
But the Ayalas did not stop there. In a move that truly jolted the market, they proceeded to unload the Honda brand from their automotive portfolio. This was a strategic pivot that sent shockwaves through the industry, considering the sheer volume of Honda dealerships the group managed across the nation.
The Fall of Astara
With barely a month left in the year, another bombshell dropped: the closure of Astara. This European-owned distribution giant had been managing four major badges in the country: GAC, Peugeot, JAC, and JMC.
Just four years ago, Astara made a bold entrance, aiming to bring luster and prestige to these brands. However, that ambition ended abruptly. The writing was perhaps already on the wall; the ominous sign that the company was struggling became clear when its top local officials began resigning, transferring to competitors before the ship officially went down.
While they aimed high, they were arguably blindsided by the relentless onslaught of Chinese electric vehicles (EVs) that have saturated the local market, changing the rules of the game faster than traditional distributors could adapt.
A Tense Road Ahead
Looking at the horizon, 2026 promises to be a grueling year. The local industry is currently suffering from a classic case of saturation—there are simply too many brands and too many models flooding a finite market.
The effects are already tangible. A slowdown in sales has been felt over the past two months, a trend expected to bleed into next year. As the market tightens, one has to wonder: Have we seen the last of the closures? Or will the new year bring more transfers, more exits, and more empty chairs in the boardrooms of the country’s biggest car companies?
