Yulon forecasts positive revenue growth this year

Yulon Motor Co (裕隆汽車) yesterday released a positive growth projection for revenue this year, thanks to increasing shipments of its first electric vehicle (EV) model based on the MIH Open EV Platform developed by Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn.

Yulon started shipping the electric sports utility vehicle Luxgen n7 earlier this year with shipments totaling 500 units in the first quarter, Yulon Motor spokesman Steven Lo (羅文邑) told investors during a virtual conference.

“In March and April, we expedited shipments to 1,200 to 15,000 units a month,” Lo said. “With higher shipments from the second quarter, we expect to complete the 9,000 Luxgen n7s in preorders by the third quarter.”

Yulon manufactures the electric vehicle while its subsidiary, Luxgen Motor Co (納智捷汽車), sells it. Luxgen has received about 20,000 n7 preorders since September 2022 and plans to accept second-wave orders from next month or June, Lo said.

Luxgen n7 is designed and based on the Model C EV developed by Foxtron Vehicle Technologies Co (鴻華先進), a joint EV venture between Hon Hai and Yulon.

“We are positive about the company’s revenue outlook, with Luxgen n7 being a major highlight of the year,” Lo said.

He said Yulon and Luxgen are discussing plans to introduce new EV models later this year, but did not elaborate.

Hon Hai last month said the new-generation Model B electric car, also designed by Foxtron, would be ready for mass production and open for preorders at the end of this year.

Regarding speculation that Yulon might distribute Chinese EVs made by BYD Co (比亞迪) and Chery Automobile Co (奇瑞汽車) in Taiwan, Lo said the company does not rule out any possibility of making vehicles for other brands, but has no substantial plans to partner with Chinese companies.

Yulon’s consolidated revenue last year expanded 6.54 percent to NT$82.12 billion (US$2.53 billion) from NT$77.08 billion in 2022, partly helped by its auto financing business operated by another subsidiary, Taiwan Acceptance Corp (裕融). Net income improved to NT$8.04 billion last year, reversing a loss of NT$469 million the previous year.

Lo said Yulon’s gross margin this year should stay at a similar level to last year when it fell slightly to 35 percent from 36 percent in 2022.