KGM has secured a $75 million (£55.8m) investment from Chery Automobile as the Korean manufacturer looks to accelerate new vehicle development and strengthen its position in global markets.
The investment builds on a platform licensing agreement signed by KGM and Chery in 2024, followed by an agreement in April 2025 to jointly develop a new range of mid-to-large SUVs.
It marks a significant deepening of the relationship. Alongside developing new vehicles, the companies now plan to cooperate on autonomous driving, software-defined vehicle technology, electrical and electronic architecture, robotics and automotive semiconductors.
They will also investigate joint investment in overseas production facilities, supply chains and sales and service networks.
KGM chairman Kwak Jae-sun said: “We plan to successfully pursue our second joint development project with the goal of global market sales and cooperate in new future business sectors such as robotics and semiconductors.
“We will also discuss joint investment in overseas production and business bases to expand our global business.”
The first vehicle to emerge from the expanded partnership will be the KGM SE10, a D+ segment SUV intended to replace the Rexton and Rexton Commercial, and scheduled to launch in early 2027.
KGM draws on Chery and BYD technology
The Chery investment also highlights how KGM is using partnerships with major Chinese manufacturers to accelerate its transition towards electrified vehicles.
Chery will provide access to platforms, new-energy powertrains and software-led vehicle architecture. However, KGM is not relying exclusively on one Chinese technology supplier.
The recently introduced KGM Musso EV uses an 80.6kWh lithium iron phosphate battery supplied by BYD, giving it an official driving range of up to 240 miles.
This means that, while KGM continues to handle areas including vehicle design, product planning and market positioning, important parts of its electric and hybrid technology are increasingly being sourced from some of China’s largest automotive groups.
That arrangement gives KGM access to technology and development scale that would be extremely expensive to recreate independently. It could also help the relatively small manufacturer launch new models more quickly as emissions regulations and customer expectations continue to change.
More than a straightforward cash injection
Although $75 million is a meaningful investment, it is unlikely to transform the company’s future by itself. The greater value could come from the wider access to Chery’s technology, purchasing power, global platforms and production capacity.
Chery sold around 2.8 million vehicles worldwide during 2025. That scale is in sharp contrast to KGM, which last year shifted just 110,535 vehicles globally, and has spent much of its recent history dealing with ownership changes and financial uncertainty.
KGM was previously known as SsangYong before being acquired by the KG Group and renamed in 2023.
Kwak said the cooperation would combine “KGM’s 70 years of technological know-how with Chery Automobile’s excellent technology”, helping the company develop into what he described as a “sustainable future mobility company”.
Task forces involving senior management from both businesses will now examine individual projects, investment structures and the division of responsibilities.
