Vietnam’s auto assembler TMT targets 3-fold profit surge, bets on electric pivot

Vietnamese auto assembler and distributor TMT Motors (HoSE: TMT) targets a sharp jump in profitability in 2026 as the company accelerates a strategic pivot toward electric vehicles.

This year, the firm projects net profit at VND217 billion ($8.24 million), 3.4 times higher from last year. It sets net revenue goal at VND3.65 trillion ($138.65 million), up over 80% year-on-year. The firm plans to sell 26,766 automakers this year, up 500% from a year earlier.

The strategy follows a transitional year in 2025, when TMT reported net profit of VND62.8 billion ($2.38 million), recovering from a loss of VND325 billion ($12.34 million) in 2024 despite a 11% decline in revenue to VND2.1 trillion (($79.88 million).

Vehicle sales reached 4,416 units in 2024, completing just over half of its plan, as the company worked through legacy inventory and restructured its product lineup.

The 2026 ambitious targets mark a decisive shift for TMT, which is repositioning itself from a traditional vehicle assembler into an electrified transport player, betting on both electric cars and two-wheelers to drive growth.

A key part of that restructuring involved clearing older stock and transitioning to vehicles that meet Euro 5.2 emissions standards, aligning with tightening environmental regulations and preparing the company for its electrification push. The firm said the cleanup of inventory and compliance upgrades have created a more stable base for expansion.

Central to TMT’s 2026 plan is a broad rollout of electric vehicles. The company intends to introduce six new EV models this year, targeting sales of 2,200 units, supported by government incentives including extended registration fee waivers.

More aggressively, TMT is entering the electric two-wheeler segment, aiming to sell 20,000 units in its first year of commercialization.

To support its EV ambitions, the company plans to deploy 2,100 charging points nationwide, with a particular focus on Hanoi and Ho Chi Minh City, where it intends to install 750 units in each location.

On the manufacturing side, TMT is completing an electric vehicle plant in the northern province of Hung Yen with an annual capacity of 3,000 units, alongside plans to develop a separate production line for electric motorcycles with capacity of 2,000 units per year.

As of end-2025, TMT carried accumulated losses of more than VND207 billion ($7.86 million), prompting its board to propose no dividend payment for the year in order to preserve capital for reinvestment.

TMT shares were traded at VND11,400 ($0.43) each on Monday afternoon.