Doubts arise over survival of TMT Motors - Wuling EV distributor

The results marked a massive decline from the same period last year when it reported profits of VND1.2 billion.

It reported having VND1.1 trillion in short-term liabilities as of the end of June, while its current assets are only worth VND987 billion.

The Vietnamese carmaker has been laying off employees and cutting costs, and temporarily shuttered one of its subsidiaries.

Its auditor, UHY, said these factors and some other issues show that there is a material uncertainty that could raise doubts about the company’s ability to continue as a going concern.

The company said 2024 has been a very challenging year as the economy downturn and belt-tightening by consumers amid inflation have caused car sales to slump despite efforts to spur demand.

In the second quarter, to ensure liquidity and reduce interest expenses, the company had to lower prices to clear out inventory, it said.

TMT Motors is planning to liquidate fixed assets and collect receivables from customers to remain afloat.

It hopes to fulfill its financial obligations and continue operations in the next accounting period.

A Wuling Mini EV on a test drive. Photo courtesy of TMT Motors

TMT Motors is a partner of the General Motors - SAIC - Wuling joint venture responsible for the production, assembly, and distribution of the Wuling Mini EV in Vietnam.

It was previously a company under the Ministry of Transport that specialized in light trucks.

Launched in June 2023, the EV comes in two versions priced at VND239 million and VND279 million. By July this year their prices had been slashed to VND197 million and VND231 million to boost sales.

It sold 5,945 vehicles last year, less than half of its target. Of these, only 591 were EVs, reaching just 11% of the target for this type of vehicle.

At the firm’s annual general meeting in April, vice chairman Bui Quoc Cong said it was merely testing the waters with the Wuling Mini EV and is planning to launch three more models, including a premium version of the Wuling Mini EV.

The company also began supplying EVs to Let's Go An Binh taxi company in Phu Yen Province at the end of May.