KG Commercial announced on the 30th that it continues to move rapidly towards normalizing its management through new product development and increased contract volumes after becoming part of the KG Group family business.
As of July this year, KGMC recorded a cumulative contract total of 300 units, including 11M and 9M eco-friendly buses, marking a growth of about 170% compared to last year’s sales of 111 units. This translates to sales exceeding 100 billion KRW, with expectations for further contract increases in the second half of the year.
Of the 300 cumulative contracts, 156 units have already been delivered, and the remaining 144 units will be produced in order of contract and delivered to customers sequentially.
This performance is especially significant as it represents the highest achievement since the establishment of KGMC, including the time during Edison Motors, and marks a major milestone in their progress after becoming part of the KG Group family business, laying a foundation for early management normalization.
Thanks to the increase in contract volumes, KGMC is expanding its production system not only at the Gyeongnam Hamyang factory but also at the Jeonbuk Gunsan factory, while also expanding its product lineup, which includes the existing 11M large buses and 9M buses, as well as medium and large intercity buses.
Additionally, the newly developed 9M bus will begin production at the Gunsan factory from September, with plans for customer deliveries. Since June, pre-demonstration events targeting transportation companies have been held, during which it received positive feedback for its excellent design and safety, leading to significant pre-orders.
Meanwhile, KGMC has acquired Edison Motors, which had entered corporate rehabilitation, in September 2023, transforming it into a company that produces and sells comprehensive eco-friendly commercial vehicles such as CNG and EV types as part of KG Group (Chairman Kwak Jae-sun).
In October 2023, Chairman Kwak Jae-sun announced during the inauguration ceremony that KGMC will focus on expanding its product lineup with medium buses and large intercity buses, enhancing collaboration in research and development and purchasing sourcing with KG Mobility, improving profitability through increased efficiency, and advancing into global markets to boost sales volume as part of a long-term management plan for becoming a comprehensive eco-friendly commercial vehicle company.
KGMC will also run an emblem replacement event to enhance its corporate and brand image. If customers (transportation companies) request to replace the old Edison Motors emblem with the KGM emblem, a free replacement service will be provided, alongside a free field inspection service for CNG buses.
A KGMC representative stated, “In the future, we plan to expand domestic markets through diverse eco-friendly bus production, while utilizing our global network to push toward increased sales volume in global markets such as ASEAN (Association of Southeast Asian Nations), transitioning from a domestic eco-friendly bus company to a global comprehensive eco-friendly commercial vehicle company.”
Lee Sang-jin daedusj@autodiary.kr