- Chery is investing in KGM, recognising its long-term growth potential and corporate value.
- KGM and Chery will step up their cooperation in autonomous driving, SDV-based advanced electrical and electronic architectures, and other future technologies.
- Both companies will embark on a second joint development project for global markets and explore new business opportunities.
KG Mobility has just announced the signing of a strategic investment agreement worth US$75 million with Chery Automobile to strengthen cooperation on future mobility technologies and consolidate their strategic alliance.
The signing ceremony at the Grand Hyatt Seoul was attended by KGM’s Chairman, Jea-Sun Kwak; KGM’s Chief Executive Officer, Ki-Young Hwang; the Chinese Ambassador to South Korea, Dai Bing; Chery Automobile’s Chairman, Yin Tongyue; and Chery’s President, Zhang Guibing, amongst other senior officials and executives.
This investment represents the latest step in the partnership between the two companies, following a platform licensing agreement signed in 2024 and a joint development agreement for medium- to large-sized SUVs in 2025. In addition to securing the investment, KGM aims to maximise synergies in the global automotive market and establish new drivers for sustainable growth.
Both companies will accelerate the development of new vehicles by combining KGM’s expertise in product planning, vehicle design and development with Chery’s new energy vehicle (NEV) powertrain system and global platform technologies.
Chery’s technologies in the NEV sector are widely recognised for their competitiveness, not only in China but also in global markets, raising high expectations for even greater technological synergies between the two companies.
The first outcome of this partnership, the ‘SE10’ project, is a D+ segment SUV that continues the legacy of the Rexton. The model will be available with plug-in hybrid (PHEV) and 2.0-litre petrol powertrains, and is scheduled for launch in early 2027.
Both companies are also expanding their cooperation on key technologies expected to shape the future of the automotive industry, including autonomous driving and advanced electrical/electronic (E/E) architectures for software-defined vehicles (SDVs).
Second joint development project targeting global markets
Following the “SE10” project, KGM and Chery have agreed to undertake a second joint vehicle development project. The project aims to develop a strategic model for key global markets, including Korea, China and Europe, incorporating regional regulations, safety standards and customer requirements from the earliest stages of product planning.
Both companies will progressively define the vehicle’s concept and specifications, the regions of production and sales, and their respective roles, with the aim of strengthening the product’s competitiveness in global markets.
Expanding cooperation in robotics, semiconductors and other future business areas
Beyond the automotive sector, KGM and Chery also explored the possibility of cooperating in robotics, semiconductors and other business areas with future growth potential.
Leveraging their respective technologies and commercial capabilities, the companies will explore opportunities for joint research and development, validation and commercialisation. In the semiconductor sector, they will also explore joint investment and the development of semiconductors for the automotive industry.
Exploring joint investment in strategic international markets
To further expand their global businesses, both companies will also explore joint investment in overseas production facilities and business operations. KGM and Chery plan to leverage their respective global manufacturing facilities, supply chains, and sales and service networks. For strategic international markets with sufficient commercial potential, the companies will examine specific investment structures and cooperation models.
To support these initiatives, both companies will establish specialised working groups, comprising senior executives from key business areas, to define implementation plans and respective responsibilities. Senior executives from both companies will also periodically review progress and key milestones.
Chairman Jea-Sun Kwak stated: “We will successfully drive forward our second joint development project, focused on global markets, whilst expanding our cooperation into future sectors such as robotics and semiconductors. We will also explore joint investment in overseas production centres and businesses to accelerate our global expansion.”
He added: “By combining KGM’s 70 years of technological expertise with Chery Automobile’s advanced technologies, this strategic alliance will enable KGM to continue its growth and evolution as a sustainable mobility company of the future.”
For its part, Chery Automobile sold approximately 2.8 million vehicles worldwide last year, whilst exports rose by 17.4 per cent year-on-year, reaching around 1.34 million units. The company maintained its position as China’s leading exporter of passenger vehicles.
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