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Chery Automobile to acquire 10% stake in South Korea’s KG Mobility through $75Minvestment
Chery Automobile is investing $75 million to acquire a 10% stake in South Korea's KG Mobility through convertible bonds. This investment aims to bolster Chery's international presence. KG Mobility, formerly SsangYong Motor, is South Korea's fourth-largest carmaker and sold over 55,000 vehicles in the first half of the year, with plans to introduce a mid-size SUV, the SE-10, next January.
Key points
- Chery invests $75 million in KG Mobility via convertible bonds.
- If converted, Chery will hold 10% equity in KGM.
- Investment enhances Chery's overseas presence and partnerships.
- KGM is South Korea's fourth-largest automaker, formerly SsangYong.
- KGM sold more than 55,000 vehicles in H1 2023, 60% of which were exports.
- The SE-10 SUV, based on Chery’s T2X platform, launches in January 2024.
Why it matters
- Chery's investment reflects a growing trend of Chinese auto manufacturers expanding internationally.
- In 2025, the electric vehicle market is expected to continue its aggressive growth, influencing partnerships.
- Strategic investments in established automakers can enhance technology exchange and market penetration.
Chery's acquisition of a stake in KG Mobility not only marks a significant investment but also emphasizes the increasing globalization of automakers, particularly as the competitive landscape shifts towards electric and hybrid models.