Astara Philippines is allegedly about to shut down its automotive distribution operations in the Philippines by January 2026, according to industry sources familiar with the transition.
Astara currently manages four vehicle brands locally—GAC Motor, Peugeot, JMC, and JAC. Its exit will lead to the turnover of these brands either to new distributors or directly to their respective manufacturers. Formal announcements from the company have not yet been issued, but partner networks have begun to receive internal briefings on the phased withdrawal.
Several brands under Astara experienced performance and operational difficulties in recent months. Peugeot encountered extended parts-supply delays that affected customer repairs. JMC and JAC continued to post limited market traction despite relaunch efforts. GAC, while recording rapid sales growth from 418 units in 2022 to over 3,200 units in 2024, has faced stronger competition from hybrid and electric vehicle brands that now dominate its price segments.
Astara delivered notable gains early in its Philippine operations. Peugeot grew its annual sales from 161 to 620 units, while GAC became one of the fastest-expanding Chinese brands in the market. However, sustaining after-sales support across its portfolio reportedly became increasingly challenging as volumes rose.
Preparations for the transition are underway. GAC Motor has already established a Philippine company, GAC International Philippines Inc., and is expected to assume full control of its local distributorship once Astara completes its exit. Negotiations for Peugeot’s new distributor are ongoing. Successors for JMC and JAC have yet to be finalized.
Astara has committed to prioritizing warranty coverage, service continuity, and parts availability for all existing customers during the handover. Dealers were informed that the company aims to complete brand transitions before the beginning of 2026 to avoid disruptions.
Astara entered the Philippine market in 2021 with a European-owned multi-brand distribution model uncommon in the local industry. Its withdrawal marks one of the largest distributor exits in recent years, affecting mainstream, premium, and commercial vehicle segments.
Further announcements from Astara and the affected manufacturers are expected in the coming months as the transition deadline approaches.
