Chery to Invest $75 Million in Korea's KG Mobility, Forge Multi-Sector Partnership

Chery Automobile has agreed to invest $75 million in South Korean automaker KG Mobility through convertible bonds. If the debt is converted into equity, Chery will hold approximately a 10% stake in KG Mobility. The two companies plan to collaborate in manufacturing, global capacity sharing, sales channels, and branding, and have already agreed to establish a dedicated task force to explore potential cooperation in areas such as semiconductors, robotics, raw materials, and steel. KG Mobility plans to launch a midsize SUV codenamed SE-10 in January next year. The vehicle will be built on Chery’s T2X vehicle platform and offered in both gasoline and plug-in hybrid variants, targeting both the Korean domestic market and overseas markets. While the company currently has no plans to export this model to the United States, it has not ruled out the possibility in the future. KG Mobility, formerly SsangYong Motor, ranks fourth in South Korea’s automotive market, trailing Hyundai, Kia, and General Motors. In the first half of this year, its global sales exceeded 55,000 units, with exports accounting for about 60% of total sales. Chery is China’s largest automobile exporter. According to data released by the company on August 1, its group-wide sales reached 276,820 units in July, up 23.3% year-over-year. Of these, 202,533 units were exported, marking a 70.1% year-over-year increase—setting a new record for monthly Chinese auto exports for the fifth consecutive month and making Chery the first Chinese automaker to surpass 200,000 units in monthly exports. Chery executives also stated that the company is studying feasible strategies to enter the U.S. market but emphasized that any such move would need to comply with local laws, regulations, and regulatory requirements.