Kia to Invest KRW 940 Billion to Produce and Sell EVs in Mexico

Kia is investing 649 million dollars (approximately KRW 940 billion) in Mexico for electric vehicle production, renewable energy, and charging infrastructure development.

Horacio Chavez, CEO of Kia Mexico, announced the investment plan during the regular press conference held by Mexican President Claudia Sheinbaum on Tuesday local time.

Kia plans to remodel the production lines at its plant in Pesquería, Nuevo León, to manufacture the EV3, a compact electric SUV model.

The upgraded production lines are scheduled to begin full-scale operations on August 4.

The project is expected to create 500 jobs this year and generate 1,500 direct jobs between 2027 and 2030.

"We remodeled the production lines to fully utilize the existing plant," Chavez said. "By becoming the first to produce and sell Mexican-made electric vehicles, we will strengthen Mexico's industrial and technological capabilities."

Mexican Economy Minister Marcelo Ebrard, who attended the press conference, noted that the initial local component sourcing rate for the EV3 produced in Mexico—which was previously manufactured entirely in South Korea—will start at 27 percent and gradually increase. He highly praised Kia's confidence in Mexico despite uncertainties in international trade.

In addition to electric vehicles, Kia will also invest in building a solar power plant within the Pesquería industrial complex and establishing charging infrastructure in public areas.

Mexican President Claudia Sheinbaum also emphasized that the announcement proves global corporations' trust in Mexico.

"Kia's investment demonstrates confidence in our country," Sheinbaum said. "A significant portion of the electric vehicles produced will be supplied to the domestic market in Mexico."

(Photo: Getty Images)
※ Please note: This article was translated by AI and may contain errors.