South Korean automaker Kia will produce and sell fully electric vehicles in Mexico, following a $649 million investment through 2028 in its existing plant in the state of Nuevo León, the company announced on Wednesday.
Economy Minister Marcelo Ebrard announced the investment as part of Plan México, the government’s industrial policy framework.
According to the government, Kia will start production of the EV3 SUV — also currently manufactured in South Korea — at its Pesquería facility, with the line set to begin operations on August 4.
The project will create 500 new jobs this year and 1,500 direct jobs between 2028 and 2030, according to local media outlet El Universal‘s report on the press conference.
Kia México chief Andy Kim praised the country’s economic growth and reaffirmed the company’s commitment to being Mexico’s “most strategic and reliable partner” over the next decade.
President Claudia Sheinbaum called the investment “great news” and said a significant portion of the locally produced EV3 is intended for the domestic market, as the government aims to promote the adoption of electric vehicles across Mexico.
Plan México
Ebrard highlighted that the investment “represents an expansion of the production capabilities of the automotive industry in our country. This is a priority objective of Plan México.”
“At a time of so much uncertainty surrounding the automotive industry, the fact that this company, one of the most important companies in the world, is seeing productivity, opportunities, and investment potential in Mexico and is choosing to invest here is highly significant,” he added.
Kia‘s announcement marks the second major investment by the automotive industry under the plan.
According to the Minister, the Mexican Government’s goal is to attract projects involving technology, with said manufacturing EVs in Mexico helping the country remain competitive.
Ebrard noted that EV production positions Mexico for future industries — such as battery manufacturing — and expands export potential beyond the United States and Canada into Latin America and other global markets, according to El Universal.
Pesquería Plant’s First EV
Kia‘s Pesquería plant, located on the outskirts of Monterrey, has been operational since May 2016 and has an annual production capacity of approximately 400,000 vehicles.
The facility currently produces the K3 subcompact sedan and hatchback, the K4 compact sedan and hatchback, and also assembles the Hyundai Tucson.
Kia exports from the plant to more than 60 markets worldwide and reached a milestone of two million vehicles produced at the facility in August 2024.
The plant was named the top manufacturing facility in Mexico and third in the Americas in the 2025 JD Power Initial Quality Study.
Adding the EV3 represents a strategic reversal for Kia in Mexico.
Exactly two years ago, Kia México’s Commercial Director Horacio Chávez stated publicly that Kia did not plan to produce EVs at Pesquería.
In May 2025, the company committed $150 million to expand K4 production at the same plant and said it expected to manufacture 280,000 units in 2025, with 60% of K4 output destined for export to 66 countries.
EV3 SUV
The EV3 is a compact electric SUV built on Hyundai Motor Group’s E-GMP platform.
The model will start with national content of nearly 27%, rising gradually.
The model has been on sale in Europe and South Korea since 2024, where it became one of the top-selling EVs in several markets, including the Netherlands.
The EV3 won the 2025 World Car of the Year award, extending Hyundai Motor Group’s streak of four consecutive overall victories before BMW’s iX3 took the title in 2026.
Kia revealed the North American-spec EV3 at the New York International Auto Show last April, confirming a late-2026 US launch as a 2027 model year vehicle.
The US version is offered in five trim levels — Light, Wind, Land, GT-Line, and GT — with a choice of two battery packs.
The standard 58.3 kWh battery delivers a Kia-estimated 220 miles of range, while the larger 81.4 kWh battery offers up to 320 miles in front-wheel-drive configuration.
The model includes a native NACS charging port for direct access to the Tesla Supercharger network.
On Mexican platform Mercado Libre, the Kia EV3 is already available to pre-order, starting at 767,700 pesos — equivalent to about $44,000.
Trade Policy Context
Kia‘s decision to produce the EV3 in Mexico carries implications for the model’s positioning in the US market.
Mexico-assembled vehicles that meet USMCA rules of origin continue to enter the United States duty-free.
Non-compliant vehicles face a combination of the 2.5% most-favoured-nation tariff and a 25% Section 232 national security tariff, pushing the effective rate to 27.5%.
USMCA utilization among Mexican exporters surged from 44.8% in January 2025 to 85% by January 2026.
The USMCA’s first formal six-year joint review began in July 2026, adding uncertainty to long-term automotive trade arrangements across North America.
Mexico increased tariffs on imports from countries without free trade agreements on January 1, 2026, with rates ranging from 5% to 50%.
In May 2026, Economy Minister Ebrard and South Korea’s Trade Minister Yeo Han-koo established a strategic ministerial dialogue and a specialized working group to modernize bilateral trade and investment relations.
Both governments agreed that Korean investments in Mexico play a significant role within regional manufacturing chains, particularly in industries linked to the automotive, electronics, auto parts, and advanced manufacturing sectors.
Negotiations toward a bilateral trade agreement have been underway since 2022, building on six decades of diplomatic relations.
Kia’s Global Footprint
Mexico joins a growing list of markets where Kia produces electric vehicles.
In Europe, Kia began assembly of the EV4 hatchback at its Žilina plant in Slovakia in August 2025, followed by the EV2 in March, after an investment exceeding €200 million.
The company also manufactures the EV6 and EV9 at facilities in South Korea and the EV9 at its plant in West Point, Georgia, in the United States.
Kia has set a global sales target of 3.35 million vehicles for 2026, with 2.775 million units expected overseas and 565,000 in South Korea.
