- Chery will invest $75 million in KG Mobility via convertible bonds to secure about a 10% stake.
- The partners will fast-track a second jointly developed model and global sales, following the SE-10 SUV.
- Collaboration expands into SDVs, autonomy, chips, robotics and potential shared manufacturing abroad.
South Korean automaker KG Mobility (KGM) has announced the signing of a strategic investment agreement with China’s Chery Automobile.
Under the agreement, Chery will invest $75 million through a wholly owned Hong Kong subsidiary by subscribing to convertible bonds issued by KGM.
If the bonds are fully converted into shares, Chery will hold an approximately 10% stake in the South Korean automaker.
The investment builds on an existing partnership between the two companies.
They first began collaborating on vehicle platforms in 2024 and signed a joint vehicle development agreement in 2025.
Their first jointly developed production model, a D+-segment SUV codenamed SE-10, is currently under development.
Built on Chery’s T2X platform, the model is scheduled to launch in early 2027 with both plug-in hybrid and 2.0-liter gasoline powertrain options.
Following the equity investment, the two companies have also agreed to begin development of a second jointly developed model.
According to the plan, the new vehicle will be marketed in major global markets including China, South Korea and Europe.
The partners will also explore cooperation in overseas production facilities, manufacturing resources and global business networks.
This aims to improve product development and manufacturing efficiency by leveraging their respective strengths in different markets.
Beyond vehicle development, the agreement includes joint research and development in autonomous driving, software-defined vehicles (SDVs), and next-generation electrical/electronic architectures.
The cooperation will also extend to emerging businesses including robotics and automotive semiconductors, covering joint R&D, pilot projects and commercialization efforts.
The two companies will also explore potential joint investment and development of automotive chips.
In recent years, Chery has steadily expanded its global strategy beyond vehicle exports into localized manufacturing, technology partnerships and strategic investments.
Zhang Guibing, president of Chery International, said the company’s global manufacturing footprint could become an important foundation for future cooperation.
The two companies will also explore sharing vehicle production capacity, jointly developing sales channels, and expanding cooperation at the brand level.
KG Mobility, formerly known as SsangYong Motor, currently trails Hyundai, Kia and General Motors in South Korea’s automotive market.
As an SUV-focused automaker, KG Mobility sold more than 55,000 vehicles across domestic and overseas markets in the first half of the year, with exports accounting for around 60% of total sales.
The latest figures show that Chery Group sold 276,820 vehicles in July 2026, up 23.3% year on year.
Monthly exports surged 70.1% to 202,533 units, making Chery the first Chinese automaker to export more than 200,000 vehicles in a single month.
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