TMT Auto Corporation (HoSE-TMT) has just announced its audited consolidated financial statements for the first half of 2025 and explained its business results for the second quarter of 2025.

Accordingly, the consolidated report shows that TMT Motors made a profit of nearly VND55 billion, while in the same period last year it lost nearly VND99 billion. The main reason is that the cost of goods sold decreased thanks to cost control and financial expenses decreased sharply by VND27.6 billion (according to a separate report), equivalent to a decrease of 53.4%.

TMT Motors said that the reason for the sharp decrease in financial costs is mainly because the company has made very strong decisions to clear inventory and pay off bank loans early.

Previously, TMT Motors suffered continuous losses for many quarters, since the last quarter of 2023, peaking at nearly VND 123 billion in the fourth quarter of 2024, after losing more than VND 100 billion in the second quarter of 2024 and losing about VND 93 billion in the third quarter of 2024 due to selling below cost price, too high financial costs, and large inventories.

The Chinese electric car giant lost more than half of its charter capital by the end of 2024, and the reason was explained as "general economic difficulties, frozen real estate, inflation risks, people tightening spending..." causing car consumption to decrease sharply.

TMT Motors encountered difficulties when it entered the electric vehicle sector from 2023 and erased all the accumulated profits for many years after entering this business segment. In 2023, TMT recorded a 13% decrease in revenue and a 95% decrease in profit. In 2024, TMT also recorded a decrease in revenue and a loss. This was a setback in business operations, leading to a decline in financial health.

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Sales of Chinese electric vehicles will face many difficulties in 2023-2024 in the context of a general decline in car consumption. TMT's business activities also declined sharply after the business plan of the low-cost Chinese electric vehicle model Wuling Hongguang MiniEV did not meet expectations. In 2024, TMT was bogged down with the famous small electric vehicle model in China, Wuling Hongguang MiniEV, produced by the joint venture General Motors (USA) - SAIC (China) - Wuling (China).

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 was even discounted by a few 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.

TMT Motors was formerly known as the Transport Equipment and Materials Trading and Manufacturing Company. The company's main activities are manufacturing, assembling and trading automobiles and spare parts of all kinds. TMT Motors is known for many famous truck products such as Cuu Long, Tata, Howo, Sinotruk tractor trucks, etc. with large loads.

In the years 2014-2017, TMT recorded high profits, respectively 64 billion VND, 187 billion VND, 48 billion VND and more than 11 billion VND. In 2021 and 2022, TMT also reported profits of more than 41 and more than 48 billion VND. The enterprise chaired by Mr. Bui Van Huu began to face many difficulties from 2023.

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TMT is having trouble with the Wuling model. Photo: TMT

The GM-SAIC-Wuling joint venture authorized TMT Motors to exclusively manufacture, assemble and distribute Wuling brand electric cars in Vietnam. TMT has also opened many dealerships in many provinces and cities.

TMT’s decision to assemble and distribute electric vehicles was very quick, but the results have not matched its ambitions. Competition in the market is increasingly fierce as VinFast (VFS) of billionaire Pham Nhat Vuong has pushed a large number of electric vehicles to the market, while at the same time, many giants such as China’s BYD have also joined.

Recently, TMT has been promoting product and supplier restructuring.

In July, TMT Motors announced an ecosystem from mini electric cars to electric motorbikes, and revealed plans to build a super-fast electric vehicle battery swapping station. TMT Motors plans to launch five electric motorbike models in the fourth quarter of 2025. These models are aimed at users who frequently travel in urban areas such as students, technology drivers, delivery staff, middle-income workers, and small transport units.

TMT also expanded its electric car line, including a smaller model than the Wuling MiniEV, the 2-seat, 2-door Nano S05, priced just slightly higher than some high-end scooters.

Currently, TMT Auto aims to have 30,000 charging stations nationwide within the next 5 years. This year alone, the company plans to open about 200 charging stations.

In 2025, TMT plans to have net revenue of more than VND 3,838 billion and after-tax profit of VND 270 billion. Thus, in the first half of this year, TMT has only completed about 32% of the revenue plan and 20% of the profit target for the whole year.

Two Vietnamese 'giants' join hands to sell Chinese cars Saigon General Service Joint Stock Company has just increased its capital contribution to Tasco Automobile Trading Company Limited to expand its business activities, focusing on distributing Geely and Lynk & Co (China) brand cars.

Source: https://vietnamnet.vn/ong-lon-viet-ban-xe-dien-trung-quoc-bat-ngo-doi-van-2433837.html