KG Mobility signs contract with Kim Long Motors of the FUTA Group in Vietnam for complete KD (knock down) vehicle supply including production facilities
15,000 units of vehicles such as Tivoli and Torres planned for 2024, up to a total of 60,000 units
Production of up to 210,000 units anticipated in the future as export sales volumes increase to the ASEAN market from KG Mobility’s first production base in South East Asia
[March 31, 2023] KG Mobility (www.kg-mobility.com) announced on Mar 31, 2023 that it has signed a KD contract with Kim Long Motors of the FUTA Group in Vietnam as its first global move after changing its corporate name.
The two companies held a signing ceremony of the license agreement for the local assembly in Vietnam at KG Tower, Seoul on March 31st. In attendance were KG Mobility chairman, Kwak Jea-sun and CEO, Jeong Yong-won, FUTA Group chairman, Nguyen Huu Luan and president, Mai Phuoc Nghe.
KG Mobility has signed a KD contract with Kim Long Motors of Vietnam’s FUTA Group as its first global move since changing its name.
FUTA Group is one of Vietnam’s leading companies with assets of 3 trillion won (2.3 billion USD), and is involved in automobile sales and passenger transportation. Kim Long Motors is an automotive subsidiary of FUTA Group.
Kim Long Motors has already begun construction of a KD plant dedicated to KG Mobility in the Hue Industrial Complex near Da Nang in central Vietnam. Volumes are expected to reach 15,000 units in 2024 and 60,000 units by 2029, up to a maximum of 210,000 units, with sales of around 6 trillion won (4.6 billion USD)..
The first stage of assembly and production in Vietnam will focus on Tivoli, Korando and Torres models from 2024, followed by New Rexton, New Musso and Musso Grand from 2025.
A contract was also signed with Kim Long Motors for the supply of all production facilities including the vehicle body shop, paint shop and assembly lines as well as the supply of KD components. This contract to supply all the production facilities and manufacturing knowledge is the first KD cooperative project by KG Mobility.
With a population of 100million, Vietnam is a fast-growing economy, and a potentially huge market; annual vehicle sales are expected to exceed 500,000 units by 2025 year. The country’s economic growth and improving consumer spending power are expected to significantly increase car sales.
With Vietnamese consumers already favouring Korean brands, KG Mobility is confident that by local producing high-quality vehicles at competitive prices it will be in a strong position to meet the demand.
Further, and as KG Mobility’s first local production base in the ASEAN market, the two companies plan to increase export volumes to other Southeast Asian countries from this new base in Vietnam.
Meanwhile, KG Mobility is accelerating its efforts in the global market since making a fresh start as a member of the KG Group. The new KD cooperation project with SNAM in Saudi Arabia is about to start the first phase of local assembly and production, and has also signed an export agreement with NGT in the United Arab Emirates (UEA).
A spokesperson for KG Mobility commented,“Vietnam is not only a potentially huge market where automobile sales are expected to increase significantly, but also an important base from which to expand our export volumes into Southeast Asian markets in the future.
“We will continue to increase our global sales by helping to develop emerging markets as well as existing markets such as Europe, and expanding overseas by launching new cars such as Torres.”