TMT Motors Corporation has just released its financial report for Q2/2024 with revenue reaching 804.5 billion VND, the highest in the past 4 quarters but slightly lower compared to the same period last year.

Due to a sharp increase in the cost of goods sold, exceeding even the revenue at over 853 billion VND, the company's gross profit from sales and service in this quarter fell to a negative 48.7 billion VND.

Excluding all expenses, the company's after-tax profit in Q2 was negative 95.3 billion VND, a decrease of approximately 97.4 billion VND compared to the same period in 2023. This is the highest loss in TMT Motors' history.

In the first 6 months of the year, TMT Motors achieved net revenue of 1,322 billion VND and a loss of nearly 100 billion VND, while in the same period last year the company recorded a profit of 1.2 billion VND.

TMT Motors explained that 2024 is a very difficult year for the economy in general and automobile manufacturers in particular. Economic recession, frozen real estate, a sharp decline in public investment, an increasing risk of inflation, and people tightening their spending have caused a sharp decrease in automobile consumption, despite continuous price reductions by automobile manufacturers and distributors to clear inventory.

In Q2/2024, to ensure liquidity and reduce interest expenses, the company had to reduce prices significantly to clear inventory, resulting in a gross profit loss of 48.7 billion VND. In addition, the company also decided to restructure its product lines to focus on new products suitable for market trends and demands.

TMT Motors, formerly known as Transport Mechanical Materials and Equipment Company, was once a "giant" in the automobile industry. The company's main activities include manufacturing, assembling, and trading automobiles and spare parts of all kinds. TMT Motors is known for its famous truck products, such as Cuu Long, Tata, Howo, Sinotruk tractors, etc., with large payloads.

Currently, TMT Motors is the distributor of China’s Wuling Mini EV in Vietnam. Over 10 days ago, the company announced an adjustment in the selling price for the 120km and 170km versions of the Wuling Mini EV. Specifically, the LV2-120 model is priced at 197 million VND, while the LV2-170 model costs 231 million VND.

These cars have been sold in Vietnam since June 2023. In total, there are 4 versions available for customers, with prices ranging from 239 to 279 million VND. However, sales of this type of vehicle by TMT Motors have not met expectations.

In 2023, TMT Motors sold only 591 Wuling Mini EVs in the Vietnamese market, representing 11% of the planned target of 5,525 units. Therefore, this year, the company adjusted its sales target down to 1,016 units.