KGM and Chery sign US$75 million strategic investment pact to co-develop SUV and future tech
KG Mobility has signed a US$75 million strategic investment agreement with Chery Automobile, deepening their partnership across EV powertrains, autonomous driving and a new global SUV.
- US$75 million
- ~2.8 million vehicles
- ~1.34 million units
- 17.4% YoY
What Happened
KG Mobility (KGM) announced on August 3 that it has signed a US$75 million strategic investment agreement with Chery Automobile, following a platform licensing agreement in 2024 and a joint development agreement for mid- to large-size SUVs in 2025. The signing ceremony took place August 2 at Grand Hyatt Seoul, attended by KGM Chairman Jea-Sun Kwak, CEO Ki-Young Hwang, Chinese Ambassador to South Korea Dai Bing, Chery Chairman Yin Tongyue, and Chery President Zhang Guibing.
Strategic partnership and platform licensing agreement signed
Participation in ESG agreement ceremony between IUCN and Chery Automobile
Joint development agreement for mid- to large-size SUVs signed
Strategic investment agreement signed (US$75 million investment)
The partnership's first outcome is Project "SE10," a D+ segment SUV that carries forward the heritage of the Rexton, offered with plug-in hybrid (PHEV) and 2.0-liter gasoline powertrains and scheduled for launch in early 2027. KGM and Chery will combine KGM's expertise in product planning, design and vehicle development with Chery's new energy vehicle (NEV) powertrain and global platform technologies to accelerate new vehicle development. Chery's NEV technologies are widely recognized for their competitiveness not only in China but also in global markets, raising expectations for even greater technological synergies. They are also broadening cooperation across autonomous driving, advanced electrical/electronic (E/E) architectures for software-defined vehicles (SDVs) and other future technologies.
- A second joint vehicle development project targeting major global markets, including Korea, China and Europe, with the vehicle concept, specifications, production and sales regions, and respective rol
- Potential cooperation in robotics, semiconductors and other future growth businesses, exploring joint research and development, validation and commercialization
- Joint investment in and development of automotive semiconductors
- Joint investment in overseas production and business hubs, leveraging each other's manufacturing facilities, supply chains, and sales and service networks
- Dedicated task forces with senior management from both companies to define implementation plans and responsibilities
- Regular progress reviews by senior executives from both companies
“We will successfully advance our second joint development project targeting global markets while expanding cooperation into future businesses such as robotics and semiconductors. We will also discuss joint investment in overseas production and business hubs to accelerate our global expansion. By combining KGM's 70 years of technological expertise with Chery Automobile's advanced technologies, this”
Chery Automobile sold approximately 2.8 million vehicles worldwide last year, while exports rose 17.4% year on year to around 1.34 million units. The company maintained its position as China's No. 1 passenger vehicle exporter for the 23rd consecutive year.
Why this matters
The investment pairs KGM's 70 years of vehicle development expertise with Chery's new energy vehicle (NEV) powertrains and global platforms. KGM aims to accelerate new vehicle development and expand globally, while Chery reinforces its exports — already China's No.1 for 23 years. The first fruit is Project SE10, a D+ segment SUV with PHEV and gasoline powertrains launching in early 2027; the companies also plan to explore robotics, semiconductors and over…
Terms in This Story
- NEV
- New Energy Vehicle — a Chinese classification for vehicles using alternative propulsion, including battery-electric, plug-in hybrid and fuel-cell vehicles.
- SDV
- Software-Defined Vehicle — a vehicle whose features and functions are primarily controlled by software, enabling updates and new services over the air.
- E/E architecture
- Electrical/electronic architecture — the design of a vehicle's electronic components, wiring and software systems that manage its functions.
- PHEV
- Plug-in Hybrid Electric Vehicle — a hybrid car with a battery that can be recharged by plugging in, offering a limited electric-only range plus a gasoline engine.
Summarised from the linked release; details can be imperfect — always verify against the original source.