TMT Motors, the exclusive distributor of Wuling electric vehicles, reported first-half profits of VND55 billion (US$2.1 million), which are higher than the full-year figure for any year since 2016.
This is despite a 7% year-on-year drop in revenues for the period to VND1.23 trillion, according to its recently released financial results.
The company said it took measures to control production and indirect costs, improve efficiency and optimize its payroll.
As a result, the cost of goods sold fell by 16% year-on-year, which boosted its gross profits to VND133 billion, 14 times up from a year earlier. Its administrative expenses decreased by over 20%.
It more than halved its financial expenses to VND23 billion by clearing excess inventory and repaying bank loans ahead of schedule.
It also achieved a three-fold increase in financial income, mainly from interest on bank deposits.
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A Wuling electric vehicle recently launched in Vietnam, with prices starting at VND399 million (US$15,215). Photo courtesy of the company |
The firm had reported losses of VND99 billion for the same period in 2024 and VND325 billion for the full year.
Its accumulated losses had amounted to VND270 billion as of the end of 2024, and the current profits have reduced them by 20%.
TMT Motors was initially a company under the Ministry of Transport that manufactured light trucks.
Today it is a partner of China’s General Motors – SAIC – Wuling joint venture and assembles and distributes Wuling EVs in Vietnam.
It offers two EV models, the Wuling Mini EV and Wuling Bingo, alongside gasoline-powered light trucks.
TMT Motors plans to launch seven new EV models and build 200 charging stations across the country this year, and targets having 30,000 stations over the next five years.
It aims to increase revenues by 65% to VND3.839 trillion and post-tax profits to VND270 billion this year to fully wipe out the accumulated losses.
