Chery KG Mobility Investment Expands Global SUV And Technology Partnership

Chery, the largest passenger vehicle exporter from China, has agreed to invest $75 million in KG Mobility Corp (KGM) through convertible bonds, marking a significant step in expanding its international footprint. If the bonds are fully converted, the investment would provide Chery with an ownership stake of approximately 10% in the South Korean automaker. The agreement strengthens an existing strategic partnership while creating new opportunities for joint product development, manufacturing, technology cooperation, and overseas market expansion.

The investment agreement was formally signed during a ceremony in South Korea on August 2. Senior executives attending the event included KGM Chairman Kwak Jae-sun, CEO Hwang Ki-young, Chery Automobile Chairman Yin Tongyue, Chery International President Zhang Guibing, and Chinese Ambassador Dai Bing. Company leaders emphasized that the partnership represents more than a financial investment, laying the foundation for broader industrial cooperation across production, technology, and international business operations.

Key Details Of Chery's Investment In KG Mobility

The companies confirmed that the $75 million investment will be executed through convertible bonds. Upon conversion, Chery would hold roughly a 10% equity stake in KGM. The collaboration also builds on previous agreements signed over the past year, reinforcing a long-term strategy focused on expanding product portfolios and improving competitiveness in international automotive markets.

Chery And KG Mobility Partnership Highlights

Executives from both companies highlighted the possibility of sharing manufacturing resources across Chery's international production network. Beyond production capacity, discussions include utilizing common distribution channels, sales networks, and selected brand-related initiatives. The objective is to improve efficiency while strengthening access to global markets through complementary capabilities and existing infrastructure.

Expanded Cooperation Beyond Vehicle Development

The collaboration extends well beyond SUV manufacturing. Dedicated management task forces will examine opportunities involving automotive semiconductors, robotics, autonomous driving technologies, raw materials, and steel. The companies also agreed to evaluate joint investment opportunities in semiconductor development while exploring future overseas manufacturing projects that leverage each other's production facilities, supply chains, and aftersales capabilities.

• Shared overseas manufacturing capacity
• Joint distribution and sales network utilization
• Automotive semiconductor collaboration
• Robotics and autonomous driving cooperation
• Supply chain and production facility integration

Joint SUV Development Continues

The first production outcome of the partnership will be the SE-10 mid-size SUV, developed using Chery's T2X platform. Positioned as the successor to the KGM Rexton, the vehicle is scheduled for launch in early 2027 and will be offered with both a 2.0-liter gasoline engine and a plug-in hybrid powertrain. The project follows a platform licensing agreement signed in October 2024 and a joint development agreement covering mid- and large-size SUVs completed in April 2025.

The companies also confirmed plans for a second joint vehicle development program targeting strategic models intended for major markets, including South Korea, China, and Europe. By combining engineering expertise, manufacturing assets, and international distribution capabilities, both automakers aim to accelerate product development while strengthening their positions in competitive overseas markets.

Chery's Export Growth Supports Global Expansion

Chery continues to strengthen its position in international markets through rapidly growing exports. The company sold about 2.8 million vehicles globally last year, including approximately 1.34 million exported units, maintaining its position as China's leading passenger vehicle exporter for the 23rd consecutive year. In July, Chery Group exported 202,533 vehicles, increasing exports by 70.1% year over year and becoming the first Chinese automaker to surpass 200,000 monthly vehicle exports. Overseas deliveries represented 73% of July sales, compared with 53% during the same period a year earlier.

Frequently Asked Questions

What does Chery's investment in KG Mobility involve?
Chery will invest $75 million in KG Mobility through convertible bonds that could be converted into approximately a 10% ownership stake. The agreement supports a broader strategic partnership covering joint SUV development, overseas manufacturing cooperation, technology collaboration, semiconductor initiatives, robotics, autonomous driving, and expanded international business operations. It also builds upon earlier platform licensing and vehicle development agreements signed during 2024 and 2025.

What vehicles will Chery and KG Mobility develop together?
The first jointly developed model is the SE-10 mid-size SUV, which is based on Chery's T2X platform and is expected to launch in early 2027. The SUV will be offered with both a 2.0-liter gasoline engine and a plug-in hybrid powertrain. The companies have also announced plans for an additional joint development program targeting strategic vehicle models for South Korea, China, Europe, and other global markets.

Why is this partnership important for both companies?
The partnership enables Chery to strengthen its presence in South Korea while expanding its international manufacturing and distribution network. KG Mobility gains access to Chery's platforms, production expertise, and global resources. Together, the companies plan to improve competitiveness by sharing production capacity, developing new SUVs, investing in advanced automotive technologies, and expanding business opportunities across multiple overseas markets.