KGM Secures $75 Million Strategic Investment from China's Chery Automobile

KGM has secured a $75 million strategic investment from China's Chery Automobile to fund the Korean automaker's new vehicle programs and future mobility technologies, the companies announced Sunday.

The deal represents the latest step in a partnership that has expanded beyond product collaboration into a long-term strategic alliance oriented toward future growth, KGM said. The agreement builds on a platform licensing deal signed in October 2024 and a joint development pact for mid-sized and large SUVs reached in April 2025.

For KGM, formerly SsangYong Motor before its acquisition by KG Group in 2022 following a court-led restructuring, the investment injects capital into a company working to rebuild its product pipeline after years of financial instability that constrained new model development.

Both automakers plan to broaden cooperation across software-defined vehicles (SDVs), electrical and electronic architecture, autonomous driving, and electrification.

KGM Chairman Kwak Jea-sun described strategic alliances as indispensable for automakers pursuing sustainable growth.

"Global cooperation has become essential for securing future growth engines," Kwak told reporters at a press conference. "By combining KGM's 70 years of engineering expertise with Chery's outstanding technological capabilities, we will further strengthen our competitiveness and grow into a sustainable future mobility company."

Under the partnership, the companies will merge KGM's vehicle planning, design, and engineering capabilities with Chery's electrified powertrain technologies and global vehicle platforms, aiming to shorten development cycles and enhance competitiveness. Chery, one of China's largest automakers and a top vehicle exporter, has been expanding its international footprint through similar partnerships, having established collaborative ventures with European brands including Jaguar Land Rover.

Their first jointly developed model, code-named SE10, is slated to debut in January 2027. The D-segment SUV will be available in plug-in hybrid and 2.0-liter gasoline variants, utilizing Chery's platform and powertrain technologies alongside KGM's product development expertise.

"Following the upcoming launch of the new strategic vehicle, we will initiate development for a much sought-after C-segment compact car," KGM CEO Hwang Ki-young said. "We plan to expand the lineup with a range of eco-friendly vehicles over time, and our development roadmap also includes an extended-range electric vehicle powertrain."

The two firms also intend to widen cooperation in future vehicle technologies, including SDV-based electronic architecture and autonomous driving systems — areas increasingly regarded as critical to the automotive industry's shift toward intelligent, connected vehicles.

The investment provides KGM with greater access to advanced electrification technologies and global platforms at a time when mid-sized automakers face rising development costs and intensifying competition. The partnership model reflects a broader industry trend in which automakers below the scale of Toyota, Volkswagen, or Hyundai-Kia are increasingly pooling resources to keep pace with the capital demands of electrification and software development. For Chery, the partnership establishes a stronger foothold in Korea while expanding its global collaboration network.

The signing ceremony was attended by Chery Automobile Chairman Yin Tongyue, Chinese Ambassador to South Korea Dai Bing, and Kwak.

"Korea and China are leading automotive countries," Yin said. "We will build on our respective strengths to create genuine synergies through complementary capabilities and shared resources."

When asked about Chery's potential entry into the Korean market, the company said it remains open to the possibility but will focus for now on deepening its partnership with KGM.