TMT Motors, a leading automotive company, has released its financial report for Q2 2024. The report reveals a challenging quarter for the company.
While quarterly revenue reached a impressive peak of VND 806 billion, the highest in the past four quarters, it slightly decreased compared to the same period last year. However, the cost of goods sold surged by 10%, surpassing the revenue.
As a result, TMT Motors experienced a gross loss of VND 47.6 billion. After accounting for various expenses, the company posted a net loss of VND 100 billion, the highest in its history. The cumulative loss as of June 30, 2024, stood at VND 46.2 billion.
TMT Motors attributed these results to the challenging economic conditions, particularly for the automotive industry. Factors such as economic recession, frozen real estate market, reduced public investment, inflation concerns, and consumersโ tightened spending have led to a significant drop in car sales, despite manufacturersโ and distributorsโ efforts to slash prices to clear inventory.
To ensure liquidity and reduce interest expenses, TMT Motors had to offer significant discounts on their inventory, resulting in a gross profit loss of VND 48.7 billion in Q2 2024. Additionally, the company is undergoing a restructuring process to align its product lines with the latest EURO 5 and 6 engine standards and market demands.
TMT Motors is the distributor of the Wuling Mini EV in Vietnam, and recently, they announced a price adjustment for the 120 km and 170 km range versions. The new prices are VND 197 million and VND 231 million, respectively. This is the first time the Wuling Mini EV has had a price change since its launch in June 2023, and it is part of a planned strategy to boost sales.
Wuling Mini EV now offers a more affordable option with its new price tag, starting from just VND 197 million.
With this price adjustment, the Wuling Mini EV becomes the first new car model in Vietnam to be priced below VND 200 million. Since its global launch in June 2020, the Wuling Mini EV has sold over 1.3 million units worldwide. It is the first electric mini car in Vietnam, featuring a compact size with a length of less than 3 meters and a turning radius of just 4.2 meters. The car offers 2 doors and seating for 4 passengers.
In terms of safety, the Wuling Mini EV is equipped with ABS, EBD, hill start assist, a driver-side airbag, a reverse camera, and a high-strength steel frame for enhanced protection.
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