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South Korean automaker KIA will invest $649 million in Mexico between 2026 and 2028 to produce a fully electric vehicle for the first time in the country, the EV3 model, the Mexican government announced this Wednesday.
The decision, according to authorities, is a sign of confidence in the national economy in a context of uncertainty for the automotive industry due to regulatory and trade changes in North America.
Secretary of Economy Marcelo Ebrard highlighted that the new production line will begin operations on August 4 at the plant in Pesquería, Nuevo León, where other company models are currently manufactured.
"It is a significant investment of $649 million," the official stated, noting that the project will allow for the transfer to Mexico of the production of a vehicle that was previously assembled in South Korea.
Ebrard explained that the investment will generate 500 new jobs this year and 1,500 direct jobs between 2027 and 2030, in addition to strengthening the integration of national suppliers.
"It has a high national content; by August 4, the national content will be almost 27% and that will continue to increase," he pointed out.
The secretary stressed that KIA's decision aligns with the objectives of the Mexico Plan, the industrial strategy promoted by President Claudia Sheinbaum to increase the national content of manufactured goods and attract high value-added investments.
"In a time of such uncertainty regarding the automotive industry, tariffs, new rules, and so on, the fact that this decision is made means that this company (...) is seeing productivity in Mexico, is seeing investment opportunities in Mexico," he maintained.
For his part, the president of KIA Mexico, Andy Kim, assured that the new investments in sustainability and electromobility are moving forward "in total harmony" with the Mexico Plan and reaffirmed the company's commitment to the country.
"KIA Mexico will be your most strategic and reliable partner to make shared prosperity a reality," he expressed.
The Director of Administration of KIA Mexico, Marianela Calderón, pointed out that the investment is based on four pillars: people, renewable energy, responsible water management, and electric mobility.
Among the projects, she highlighted the construction of a 2-megawatt solar park, with an expansion planned to 8 megawatts by 2030, and a second recycling plant that will allow for the reuse of approximately 70% of the treated water used in the company's operations.
Likewise, the Commercial Director of KIA Mexico, Horacio Chávez, announced that the EV3 will be the first fully electric vehicle produced and marketed by the company in Mexico, accompanied by the development of infrastructure and charging solutions to facilitate the adoption of electromobility.
"For the first time in our history, we will produce and market a fully electric vehicle in Mexico," he stated.
President Claudia Sheinbaum celebrated the announcement, considering that it strengthens both productive investment and the transition towards electric mobility.
"It is great news. One, the investment per se from KIA shows confidence in our country (...) And the second is the push for electromobility, which means the production of an electric vehicle and the network to be able to charge these vehicles," she declared.
The investment is part of the Mexican government's strategy to strengthen the automotive industry, increase the national content of vehicles produced in the country, and consolidate Mexico as a hub for manufacturing and technology development linked to electric mobility. EFE
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