Kia, the South Korean automaker, has announced a significant investment of $649 million in Mexico over the next two years. This move will bring the production of its EV3 SUV model, the company’s first fully electric vehicle made in Mexico, transforming the automotive landscape for many local communities. At a recent press conference with President Claudia Sheinbaum, Kia Mexico CEO Andy Kim emphasized that this project aligns with the Government of Mexico’s Plan Mexico initiative. This strategy aims to stimulate industrial growth, reduce imports, and boost regional development, benefiting countless citizens.
The investment will take place between 2026 and 2028, primarily focused on expanding Kia’s facility in Pesquería, Nuevo León. This plant will adapt to produce the compact SUV, which was previously manufactured only in South Korea. Additionally, Kia has committed to allocating part of its investment towards environmental sustainability projects, addressing concerns that matter to our communities.
Economy Minister Marcelo Ebrard announced that production is set to begin on August 4, making Mexico the first country outside of Korea to produce this electric model. He described this development as a positive step towards making electric vehicles more accessible and competitive in the market. By incorporating new technology and energy-efficient systems, the project aims to increase domestic content in production, starting from about 27%, as local suppliers become involved.
The initiative is expected to create around 500 new jobs initially, with projections suggesting an increase to 1,500 direct jobs by 2030. This growth will provide new employment opportunities at a time when many are seeking stability. President Sheinbaum highlighted that a significant portion of the production will be aimed at the domestic market, which is a key component of the administration’s economic plan.
Kia’s commitment to invest in Mexico comes as reassurance amid current uncertainties in the investment climate, including challenges stemming from protectionist policies in the United States and ongoing assessments of the United States-Mexico-Canada Agreement. Minister Ebrard noted that Kia’s decision reflects confidence in Mexico’s potential for investment, particularly in the automotive sector, demonstrating that opportunities exist even in challenging times.