China's Chery to Invest $75 Million in South Korea's KG Mobility to Expand Global Reach

Post by : Saif

Chinese automaker Chery Automobile has agreed to invest $75 million in South Korean SUV manufacturer KG Mobility through convertible bonds, marking a significant step in expanding its global automotive footprint.

The investment will give Chery an opportunity to acquire approximately a 10% stake in KG Mobility if the bonds are converted into shares, strengthening cooperation between the two companies.

Partnership Focuses on Global Manufacturing

Chery said the partnership aims to leverage its worldwide manufacturing network to support future collaboration. Company executives indicated both firms could share production facilities, improve manufacturing efficiency, and cooperate in distribution and brand development across international markets.

The agreement reflects a growing trend among Chinese automakers to partner with established global manufacturers to expand overseas production capacity.

Chery Targets Overseas Growth

As China's largest vehicle exporter, Chery continues to prioritize international expansion. Company officials said the investment aligns with its strategy to strengthen its presence in global markets while exploring new opportunities in regions including Europe, Asia, and potentially North America.

Chery also confirmed it is evaluating options for entering the U.S. market but emphasized that any future expansion would depend on meeting all regulatory and legal requirements.

Read more: China’s Great Wall Motor Plans First Europe Plant, Targets 300,000 Cars a Year by 2029

New SUV to Launch in 2027

KG Mobility plans to launch its new midsize SUV, codenamed SE-10, using Chery's T2X vehicle platform. The model will be available in both gasoline and plug-in hybrid variants for domestic and international customers.

The company said there are currently no plans to export the vehicle to the United States, although future opportunities remain under consideration.

KG Mobility Strengthens International Strategy

Formerly known as SsangYong Motor, KG Mobility continues to focus on export-led growth. More than half of the company's vehicle sales now come from overseas markets, making international partnerships increasingly important for future expansion.

The collaboration with Chery is expected to enhance product development, manufacturing capabilities, and global competitiveness.

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