In a significant move that underscores the deepening collaboration between two automotive giants, Chery Automobile and South Korea’s KGM Motors have officially signed a joint development agreement for mid-size and large SUVs. The signing ceremony took place at Chery’s headquarters in Wuhu, Anhui Province, marking a pivotal step in their strategic partnership. This agreement is set to accelerate the development of a new generation of SUVs, encompassing both traditional internal combustion engine (ICE) models and new energy vehicles (NEVs), with a target completion date of 2026.
The partnership builds on the strategic alliance established in October 2024, and this latest agreement represents a critical milestone in their collaborative efforts. By leveraging Chery’s global technological platform and KGM’s expertise in SUV and off-road vehicle development, the two companies aim to create a robust product lineup that meets the evolving demands of global markets. The collaboration is also aligned with their shared vision of becoming leaders in the global smart mobility sector.
Chery, founded in 1997, has grown into one of China’s most successful automotive exporters. By 2025, Chery’s products had reached over 100 countries, amassing a global customer base of more than 16 million. In 2024, the company achieved record-breaking revenues of 480 billion yuan (approximately $66 billion) and sold 2.6 million vehicles worldwide. This remarkable performance was driven by growth across multiple segments, including NEVs, ICE vehicles, overseas exports, and domestic sales.
A standout achievement for Chery in 2024 was its export volume, which reached 1.14 million vehicles, cementing its position as China’s leading passenger car exporter for the 22nd consecutive year. This success is a testament to Chery’s ability to adapt to diverse market needs and its commitment to innovation and quality.
KGM, South Korea’s second-largest automotive group, boasts a rich history spanning 71 years. Since its founding in 1954, the company has been renowned for its expertise in SUV and off-road vehicle technologies. KGM’s portfolio includes several iconic models that have garnered a loyal following in South Korea and select international markets.
However, the global automotive industry is undergoing a seismic shift toward electrification and 智能化 (smart technologies), and KGM has been actively seeking ways to stay competitive in this rapidly changing landscape. The partnership with Chery reflects KGM’s recognition of Chery’s advanced research and development (R&D) capabilities and its platform-based technological innovations. By collaborating with Chery, KGM aims to accelerate its transition into the era of smart and electric mobility.
The joint development agreement between Chery and KGM is a win-win for both companies. For Chery, the partnership provides an opportunity to further expand its global footprint by tapping into KGM’s established presence in South Korea and other markets. For KGM, the collaboration offers access to Chery’s cutting-edge technologies and its extensive experience in developing vehicles for diverse markets.
The agreement outlines a comprehensive roadmap for the development of mid-size and large SUVs. These vehicles will be designed to cater to a wide range of consumer preferences, offering both ICE and NEV options. The development process will be based on Chery’s global technological platform, which is known for its flexibility and scalability. This platform allows for the efficient development of multiple vehicle models, reducing time-to-market and production costs.
The first vehicles resulting from this collaboration are expected to be launched by 2026. These SUVs will feature advanced technologies, including state-of-the-art powertrains, 智能驾驶辅助系统 (intelligent driving assistance systems), and connected car capabilities. By combining Chery’s technological expertise with KGM’s design and engineering strengths, the two companies aim to deliver vehicles that set new benchmarks in their respective segments.
The partnership between Chery and KGM is not just about developing new vehicles; it is also about shaping the future of mobility. Both companies are committed to advancing the transition to sustainable and intelligent transportation solutions. By pooling their resources and expertise, they aim to accelerate the development of innovative technologies that will redefine the automotive industry.
One of the key focus areas of the collaboration is the development of NEVs. As global demand for electric vehicles (EVs) continues to rise, Chery and KGM are investing heavily in the development of advanced battery technologies, electric powertrains, and charging infrastructure. Their goal is to create vehicles that offer exceptional performance, range, and convenience, making EV ownership more accessible and appealing to consumers worldwide.
In addition to NEVs, the partnership will also explore opportunities in the field of autonomous driving. Both companies recognize the transformative potential of autonomous vehicles and are working to integrate cutting-edge 智能驾驶技术 (intelligent driving technologies) into their future models. These technologies will enhance safety, reduce driver fatigue, and provide a more enjoyable driving experience.
The signing of the joint development agreement between Chery and KGM marks the beginning of an exciting new chapter in their partnership. Over the coming years, the two companies will work closely to bring their shared vision to life, developing vehicles that combine the best of both worlds. Their collaboration is a testament to the power of international cooperation in driving innovation and progress in the automotive industry.
As the global automotive landscape continues to evolve, partnerships like this one will play a crucial role in shaping the future of mobility. By leveraging their respective strengths and working together toward a common goal, Chery and KGM are well-positioned to lead the charge into a new era of smart, sustainable, and connected transportation.
In conclusion, the joint development agreement between Chery and KGM is a landmark event that underscores the importance of collaboration in the automotive industry. With their combined expertise and shared commitment to innovation, the two companies are poised to make a significant impact on the global market, delivering vehicles that meet the needs of today’s consumers while paving the way for a brighter, more sustainable future.
