Chinese automotive manufacturer has committed to investing $75 million in a South Korean fellow automaker to strengthen their two-year collaboration.
The partnership will leverage the former’s new energy powertrain technology and global platform expertise alongside the latter’s strengths in product planning, design, and vehicle deployment to accelerate the development of new models. This collaboration also aims to expand jointly into autonomous driving and advanced electrical and electronic architectures, focusing on the transition toward software-defined vehicles.
The first vehicle resulting from this partnership will be the SE-10, a mid-sized SUV that pays homage to the company’s Rexton series. It is scheduled to debut early next year in two variants: a plug-in hybrid and a 2.0-liter gasoline engine.
Following the launch of the SE-10, the companies plan to collaborate on a second vehicle that will be marketed in China, South Korea, and Europe. They intend to incorporate regional regulations, safety standards, and customer preferences from the outset, with plans to finalize specific vehicle types, specifications, production and sales territories, and role divisions at a later point.
Additionally, the partnership will explore joint initiatives in robotics and semiconductor technology, aiming to co-develop research, verification, and commercialization efforts based on each company’s technological capabilities. There will also be joint investments in automotive chip development.
For global expansion, the companies are discussing joint investments in overseas manufacturing facilities and business operations. They plan to utilize their existing production sites, supply chains, and sales networks collaboratively. Specific investment plans will be evaluated for regions where market potential has been validated, with task forces led by senior managers from both firms to oversee progress and hold regular reviews.
Their collaboration first began in 2024 with a licensing agreement for a platform. The following year, they committed to co-developing medium and large SUVs.
The automaker was the top vehicle exporter in its country for 23 consecutive years as of 2025, with exports reaching 1.3 million units—an increase of 17% over the previous year. In July alone, monthly exports exceeded 200,000 vehicles for the first time, bringing total exports for the first seven months of the year to approximately 1.1 million.
Shares of the automaker traded around HKD26.80 (roughly USD3.42) as of late afternoon in Hong Kong, reflecting a decrease of about 2.6%.
The South Korean company, formerly known as SsangYong Motor, had previously partnered with a major Chinese automaker from 2004 to 2009 before withdrawing due to financial difficulties faced by its partner. In 2011, it was acquired by an Indian automotive group but filed for receivership again in 2020 after funding was cut. It was taken over by a South Korean conglomerate in 2022 and renamed last year.
Its stock closed up nearly 6% today at KRW2,855 (around USD1.99).