Vietnam distributor of Chinese EVs reports big profit growth in Q1

Vietnam’s TMT Motors Corporation (HoSE: TMT), the distributor of Chinese electric vehicle brand Wuling, reported VND33.76 billion ($1.3 million) in Q1 after-tax profit, about 125 times higher than Q1/2024.

This marks the company’s second-highest quarterly profit on record. Last year, it reported a record loss of VND325 billion ($12.5 million).

TMT Motors posted net revenue of nearly VND676 billion ($26 million) in the period, up 31% year-on-year, according to its Q1 financial report.

TMT said its financial expenses for Q1 decreased by VND21 billion ($808,000), a reduction of 76% year-on-year, primarily due to the company's decision to clear all inventory and settle bank loan debts ahead of schedule.

Selling expenses and administrative expenses decreased by VND3 billion ($115,400), equivalent to 14% compared to the same period in 2024, mainly due to the company's "decisive" cost management policies, restructuring of its entire production process, and efforts to minimize waste.

Despite the Q1 large profit, TMT's cumulative loss reached VND236 billion ($8.8 million) by the end of Q1.

Liabilities rose to VND1.59 trillion ($61.1 million), driven mainly by a 117% surge in short-term payables to suppliers, which reached VND670 billion ($25.7 million). The company’s equity stood at VND146 billion ($5.6 million).

The company’s total assets reached VND1.73 trillion ($66.5 million) at the end of Q1, increasing by more than VND265 billion ($10.2 million) from the beginning of the year.

In 2023, TMT signed a deal with the GM-(Saic-Wuling) joint venture to exclusively manufacture, assemble, and distribute Wuling electric vehicles in Vietnam.

The foreign partner, a joint venture between U.S.-based General Motors (GM) and China’s Saic Motor and Wuling Motors, has provided components to the Vietnamese automaker.

TMT currently distributes two vehicle models - Wuling Minis and Wuling Bingos. It also sells gasoline-powered light trucks.

In 2025, TMT plans to introduce seven additional EV models to the Vietnamese market. These models will be capable of charging at home via a standard 220V outlet. Among them, the Baojun E100, a two-seater, will be priced below VND150 million ($5,800), including the battery but excluding taxes and fees.

At the recent 2025 AGM, TMT leaders announced plans to invest in 30,000 charging stations nationwide, divided into two phases over five years.

Chairman Bui Van Huu said pilot charging stations would be installed in Hanoi and Ho Chi Minh City starting in June, with a target of 200 stations by the end of this year. The remaining 28,800 stations are expected to be completed by the end of 2029.

For 2025, TMT targets sales of 8,075 vehicles, up 152% from 2024; net revenue of VND3.84 trillion ($147.7 million), a 65% rise year-on-year; and after-tax profit of VND270 billion ($10.4 million).