Shares of Chinese car dealership TMT Motors continued to hit the ceiling after explaining the previous sharp increase. The company that once suffered heavy losses, owned by Mr. Bui Van Huu, plans to launch a 2-seater electric car, which could cost less than 150 million VND (including battery).
In the trading session on January 2, TMT shares of TMT Automobile JSC - TMT Motors continued to increase by more than 6.7%, to VND 10,500/share, after TMT on January 1 explained about the previous 5 ceiling price increases.
Regarding the reason why TMT shares increased to the ceiling from December 25 to 31, 2024, the Chairman of TMT Motors said that the company did not have any impact on TMT shares' price, but due to market demand and beyond control, while business activities were still going on normally as planned.
Clearing inventory, about to sell electric cars for 150 million VND
TMT Motors informed that since the beginning of 2024, the company has implemented the policy of clearing inventory, restructuring all products from production to consumption. The company has worked with foreign suppliers to add new car models with beautiful designs, including them in the production and business plan since the beginning of 2025.
In a recent Board of Directors resolution, TMT said that cutting losses and resolving inventory has helped maintain stable cash flow, ensuring production and business activities, and building trust with credit institutions.
Specifically, by early December 2024, the company had reached an agreement with foreign partners on new commercial and electric vehicle models, expected to be put into production and assembly for sale in Vietnam from the first quarter of 2025. Of which, commercial vehicles include 18 new models from 500kg to 40 tons, electric vehicles have 7 new models (including 2-seat electric vehicles to replace two-wheeled motorbikes)...
Information about a 2-seater electric car priced under 150 million VND that will soon be sold in Vietnam has attracted the attention of many people.
Previously, TMT Motors planned to distribute the Baojun E100, a new mini electric car model in 2025. The expected price is under 150 million VND, including the battery. This is the car brand of the SAIC-GM-Wuling joint venture in China.
Most likely, TMT will initially import Baojun E100, then assemble it in Vietnam and sell it commercially, like the Wuling mini EV.
TMT is also expected to launch the Baojun Yep 2023 and Baojun Yep Plus models. This unit also assembles famous, heavy-duty truck products such as Sinotruk Cuu Long and Howo tractors,...
The company plans to sell more than 8,000 vehicles in 2025 - mainly trucks, and more than 3,400 electric vehicles. Total revenue will reach more than VND3,800 billion, with a profit of nearly VND300 billion.
Selling Chinese electric cars is not easy
TMT Motors is a Chinese electric vehicle company. The Wuling mini EV model costs less than 200 million VND, including the battery. However, over the past 2 years, the company has recorded very low sales of this model, only a few hundred units, causing great disappointment.
TMT is facing difficulties amid a general decline in car consumption. TMT's business activities also suffered a sharp decline after the business plan for the low-cost Chinese electric car Wuling Hongguang MiniEV did not meet expectations.
Wuling was the world's best-selling small car model for 4 consecutive years (2020-2023). TMT sells for only 239 million VND/car. At times, Wuling is also discounted by tens of millions of VND.
However, Wuling car sales have been slow. In 2023, TMT sold only 591 Wuling HongGuang MiniEV electric cars, much lower than the plan to sell more than 5,500 units.
It can be seen that TMT's electric car sales are not effective while this business has had to spend a lot of money to distribute this car line in Vietnam.
In the first 9 months of 2024, TMT recorded net revenue of VND 1,675 billion, but lost VND 192 billion due to selling below cost price, too high financial costs, and large inventories. This loss is equal to about 52% of the company's charter capital.
According to the explanation, objectively, TMT Auto Corporation, chaired by Mr. Bui Van Huu, suffered losses in the third quarter of 2024 due to "general economic difficulties, frozen real estate, inflation risks, and people tightening spending", causing a sharp decline in car consumption.
Subjectively, it is due to "financial costs being too high for many years due to large inventories, thereby generating many additional costs in production and business".
In fact, the financial report shows that Mr. Bui Van Huu's TMT sold goods below cost price, thereby causing negative gross profit.
Source: https://vietnamnet.vn/sap-tung-o-to-dien-150-trieu-dai-gia-ban-xe-trung-quoc-giai-trinh-dien-bien-la-2359495.html
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