KG Mobility has decided to expand its strategic cooperation with Kim Long Motors, a subsidiary of Vietnam’s FUTA Group in the automotive sector, to ensure a successful entry into the Vietnamese market.
The meeting took place over two days, from November 14 to 15, at the Kim Long Motors factory located in the Hue industrial complex near Da Nang city in central Vietnam. Attendees included KG Group Chairman Kwak Jae-seon, KGM CEO Jeong Yong-won, KGMC CEO Kim Jong-hyun, as well as FUTA Group Chairman Mr. Nguyen Huu Luan and Kim Long Motors President Mr. Mai Phuoc Nghe, along with other relevant personnel.
During the meeting, participants inspected the ongoing construction site of the dedicated KGM KD factory and reviewed future schedules. They also discussed strategies for bringing the recently released Torres EVX and KGMC electric bus to the Vietnamese market, agreeing to facilitate further consultations between the two companies to strengthen their mutually beneficial partnership.
Chairman Kwak Jae-seon stated, “Vietnam is a market with tremendous growth opportunities and significant potential. It is also important as a hub for Southeast Asia centered around ASEAN. We plan to expand our close cooperation with the FUTA Group as a long-term strategic partner through various localizations, including KD.”
He further added, “KGM has recorded three consecutive quarters of profit, thanks to increased domestic and international sales, and is laying the foundation for business normalization by solidifying plans for electrification through the recent launch of the Torres EVX and by confirming plans for hybrid vehicle development. We will leap toward becoming a global corporation through active new market development, including the expansion of CKD operations in high-potential markets like Europe, Saudi Arabia, and Vietnam.”
Since changing its name in March, KGM has signed a KD agreement with Kim Long Motors as its first global step, while also establishing contracts to supply complete production facilities, including vehicle body shops, paint shops, and assembly shops. This exchange of KGM’s production know-how is expected to enable the supply of high-quality vehicles.
Currently, Kim Long Motors is constructing a dedicated KD factory for KGM in the HUE industrial complex near Da Nang, with projections to start with an initial annual production of 15,000 units in 2024, scaling up to a total of 60,000 units by 2029, with a revenue expectation of approximately 6 trillion KRW.
The vehicle models produced locally will include the Tivoli and Korando from 2024 as phase one, followed by the All-New Rexton and New Rexton Sports & Khan production starting from 2025.
In addition, KGM is expanding its global new product launches, including the launch of the Torres in the European market and test drive events targeting Africa, the Middle East, and CIS regions, in response to the rising trend in export volume. Last month, Chairman Kwak Jae-seon personally participated in the Middle Eastern economic delegation with parts partners to sign an MOU regarding the establishment of a supply chain with Saudi National Automobiles Manufacturing Co. (SNAM), thereby strengthening its global market strategy through expansion into emerging markets.
Lee Sang-jin daedusj@autodiary.kr