NextFin News — Chery Automobile agreed on August 3 to invest $75 million in South Korean automaker KG Mobility through convertible bonds that could yield an approximate 10 percent stake if converted.
The strategic investment agreement expands an existing alliance that began with a platform-licensing deal in October 2024 and a joint mid- and large-SUV development pact in April 2025. Under the new terms, the partners will accelerate new-vehicle programs, deepen collaboration on autonomous driving and software-defined-vehicle electronic-electrical architectures, and combine KG Mobility’s vehicle-planning, design and engineering expertise with Chery’s electrified powertrains and global platforms. Their first jointly developed model, the D-segment SUV code-named SE10, is scheduled for launch in January 2027 in both plug-in hybrid and 2.0-liter gasoline versions built on Chery’s T2X platform. The companies also formed a task force to explore cooperation beyond automobiles, focusing on robotics, semiconductors, raw materials and steel through joint research, pilot projects and eventual commercialization.
KG Mobility, the former SsangYong Motor acquired by KG Group in 2022, ranks behind Hyundai, Kia and General Motors in the Korean market and sold more than 55,000 vehicles in the first half of 2026, with exports accounting for about 60 percent of volume. For Chery, the transaction strengthens its foothold in Korea and opens avenues for shared global production capacity, according to Chery International President Zhang Guibing.
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