KG Mobility expands into Southeast Asia with Futa Group partnership

KG Mobility, previously known as Ssangyong Motor Co., announced on Friday its alliance with Vietnam's Kim Long Motor, a subsidiary of the Futa Group. The partnership involves a knocked-down (KD) contract, which calls for exporting parts for assembly and production in Vietnam.

The Futa Group, valued at 3 trillion won ($2.3 billion), operates businesses in automotive sales and passenger transportation. Kim Long Motor intends to leverage this collaboration by building a dedicated KD facility in an industrial park near Danang, central Vietnam. This factory is projected to produce 15,000 units in 2024, with a cumulative output of 210,000 units by 2029, generating an estimated sales volume of 6 trillion won ($4.6 billion).

The factory will produce KG Mobility's vehicle models, including Tivoli, Korando, Torres, Rexton and Rexton Sports. The Tivoli is a stylish and fuel-efficient subcompact crossover SUV, while the Korando is a reliable compact SUV designed for both city and off-road adventures.

The Torres is an electric crossover SUV focusing on eco-friendliness, and the Rexton is a mid-size SUV known for its ruggedness and off-road capabilities. Lastly, the Rexton Sports is a versatile pickup truck variant of the Rexton SUV, combining practicality and robustness.

The collaboration marks KG Mobility's inaugural production base within the Association of Southeast Asian Nations (ASEAN) and signifies the company's ambition to increase its export volume in the region.

KG Mobility is also engaging in KD cooperation with Saudi National Automobiles (SNAM) of Saudi Arabia, with the first phase of local assembly and production set to commence this year.

A KG Mobility representative stated that Vietnam is a crucial hub market in Southeast Asia, and the company is committed to boosting its global sales by targeting both established markets like Europe and emerging markets in the region.

Write to Hyung-Kyu Kim at khk@hankyung.com