Representatives of KG Mobility and China's Chery Automobile, including KGM Chairman Kwak Jea-sun, second from left, and Chery Automobile Chairman Yin Tongyue, second from right, pose after signing a strategic partnership and platform licensing agreement at Chery's headquarters in Wuhu, Anhui Province, Saturday. From left are KGM CEO Hwang Ki-young, Kwak, Yin and Chery International CEO Zhang Guibing. Courtesy of KG Mobility

KG Mobility (KGM) announced, Monday, that it has formed a strategic partnership and platform licensing agreement with Chery Automobile, laying the foundation for future growth, particularly in the development of Korean-style sport utility vehicles (SUVs).

The signing ceremony took place at the headquarters of the Chinese automaker in Wuhu, Anhui Province, Saturday. The event was attended by KGM Chairman Kwak Jea-sun and CEO Hwang Ki-young as well as Chery Automobile Chairman Yin Tongyue and Chery International CEO Zhang Guibing.

"KGM began as part of the KG Group family and is successfully advancing its global market strategy and management normalization by launching a variety of models with enhanced quality, along with new offerings like the Torres EVX and Actyon," Kwak said.

“In particular, through this strategic partnership and technical cooperation with Chery Automobile, it will be possible to respond to the rapidly changing automobile market by developing more diverse models, shortening the development period for new cars, and launching new cars that meet customer needs.”

He also emphasized, “Above all, we will develop a Korean SUV that provides differentiated mobility value based on KGM's 70 years of technological knowhow and new brand strategy of ‘practical creativity.'”

Through this strategic partnership and platform licensing agreement, KGM aims to develop mid-size and large SUVs that adapt to market changes, as well as models designed for the global market.

Meanwhile, Chery Automobile has become the top exporter in China, selling 1.88 million vehicles in 2023, including 937,000 vehicles in exports. The Chinese automaker is poised for global expansion, with sales expected to exceed 1.75 million vehicles by the third quarter of 2024, marking a 40 percent increase from a year ago. Notably, Chery made its debut on the Fortune Global 500 list in August, ranking at 385.