Chery deepens ties with KGM as a 2026 Chery Tiggo 9-based SUV looms for the Korean underdog

KGM, formerly SsangYong, has received a large investment from Chery as the Chinese giant looks to secure a long-term strategic presence in South Korea.

Chery has pledged a US$75 million (over $107 million) investment in Korea’s third largest automaker, following on from a previously-announced deal to build a mid-size and large SUV using Chery platforms in South Korea.

Both brands will also deepen collaborations on software, electrical architecture and autonomous driving features.

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The deal will grant KGM access to Chery platforms, which will give it a boost on the electrification front, and accelerate product development cycles. For Chery it will potentially open up a manufacturing base in South Korea, which can have several trade benefits, particularly to markets like Europe in the future.

The previous strategic agreement between the brands will result in a co-developed vehicle (code-named SE-10) on the Chery T2X platform, which currently underpins the Tiggo 9 large SUV. The Tiggo 9 is currently Chery’s flagship offering in Australia.

KGM said the SE-10 will be in the upper large segment and “continue the Rexton’s legacy”. It also said the joint-venture vehicle will launch in early 2027 globally and will be available both as a plug-in hybrid and 2.0-litre petrol turbo.

It is unclear whether this model will live alongside the Musso-based Rexton, which KGM dubs “Korea’s only ladder frame SUV” or replace it entirely. The latter would mean no replacement Rexton based on the new-generation Q300 Musso.

The Korea Times reports Chery said it was open to the idea of launching the Chery brand in South Korea, but for now was focused on its partnership only.

For KGM the investment is critical as it seeks to be more of a global player after years of financial turmoil under the SsangYong brand.

The automaker languished under its previous owner Mahindra and for a long time struggled to find a buyer, which has had the knock-on effect of delaying new model roll-out plans. 

This is part of the reason the brand has long lived in the shadow of Korea’s most famous duo, Hyundai and Kia.

Under the SsangYong brand, the Korean company had significant staying power in Australia despite a relatively small operation thanks to a cult following for its affordable and unassuming diesel Musso ute which continues to be its best-seller.

While KGM has struggled with the rise of affordable Chinese rivals in the Australian market, it will no doubt be pinning its future sales success Down Under on the Q300 Musso which launches here later in 2026.

Meanwhile Chery has surged up the charts locally, now ranking amongst Australia’s top-10 automakers thanks largely to the success of its ultra-affordable Tiggo 4 small SUV and Tiggo 7 mid-sizer.

Not only will it launch Lepas in Australia later this year, but the arrival of the off-road focused Jetour and blocky iCaur lifestyle brands are also expected.

While many headlines are drawn to BYD, and SAIC (MG, LDV) has been established for longer in Australia, Chery is China’s largest vehicle exporter, sending 1,146,350 vehicles overseas, nearly doubling its tally from last year.

Its deal with KGM is just one of a range of strategic investments, with others around the world including with Jaguar Land Rover (which has spawned a re-boot of Freelander as a new joint-venture brand) and also a memorandum of understanding with Indian giant, Tata Motors.

It also plans to utilise part of Nissan’s Sunderland plant in the UK to build Chery models for the UK and Europe.