KG Mobility Corp. has formed a partnership with China’s Chery Automobile Co. to develop mid- to large-sized SUVs, marking the second collaboration between the companies in six months.
The South Korean automaker, formerly known as Ssangyong Motor, said the agreement will accelerate development of its new model code-named SE-10, which it aims to complete by 2026. The partnership also covers self-driving technology and electrical/electronic architecture for software-defined vehicles.
The deal follows an October 2024 agreement when KG Mobility signed a platform technical license agreement with Chery, gaining access to the Chinese firm’s T2X platform for developing plug-in hybrid vehicles. That earlier arrangement covered all markets except China and the United States.
Chery has been rapidly expanding its product offerings since early 2024, introducing new models approximately every two weeks across various powertrain types including plug-in hybrids and pure electric vehicles. The Chinese manufacturer has been making significant moves globally, including a recently announced $1 billion investment in Turkey for a manufacturing plant with capacity to produce 200,000 vehicles annually.
KG Mobility Chairman Kwak Jae-sun indicated the partnership would allow the company to leverage its 70 years of technological expertise alongside Chery’s global platform to develop vehicles with “differentiated mobility value.” The collaboration comes as both companies face challenging market conditions. KG Mobility’s global sales fell 16% to 80,643 vehicles in the first nine months of 2024, while Chery’s sales declined 9% to 1.58 million units during the same period.
The Torres SUV maker expects the partnership to help it develop both traditional combustion engine vehicles and eco-friendly models for specific market segments.
