KG Mobility said Friday it is accelerating its push into Southeast Asia by strengthening cooperation with its Vietnamese knock-down (KD) production partner.
The Korean automaker said Chairman Kwak Jae-sun visited Vietnam this week to review production preparations and discuss expanding collaboration with local partner FUTA Group ahead of the company’s market entry.
During the visit, Kwak met with FUTA Group Chairman Nguyen Huu Luan at the group’s headquarters in Da Nang to discuss ways to deepen business cooperation.
Earlier, the KGM chairman inspected the Kim Long Motor Hue (KLMH) plant, a dedicated KD production facility in the Hue Industrial Complex that is nearing completion.
The plant is scheduled to begin assembling KGM’s key models, including the Rexton SUV and Musso pickup, in the second half of this year.
KGM plans to supply production equipment for body, painting and assembly processes, enabling the factory to produce vehicles locally using the company’s manufacturing technology and quality control systems.
FUTA Group operates businesses ranging from automobile distribution to passenger transportation in Vietnam, while Kim Long Motor is its automotive subsidiary. The two companies established their partnership in 2023 through a licensing agreement for local vehicle assembly.
KGM has been expanding its KD business as part of its broader strategy to boost global exports.
The automaker signed a heads of agreement last year to supply KD vehicles to Indonesia and plans to expand the business further into emerging markets such as Bangladesh and Sri Lanka this year.
“Vietnam is a market with rapidly growing demand for automobiles and a strategic base for expanding exports across Southeast Asia,” Kwak said, adding that the company will continue increasing global sales through new overseas markets and broader international launches of its models.
hyejin2@heraldcorp.com
