Kia Corporation Invests $649 Million in Mexican EV Production

Kia Corporation will invest $649 million to manufacture and sell fully electric vehicles in Mexico. Production of the EV3 model, which was previously built in South Korea, is scheduled to begin on August 4 at an existing facility in Nuevo Leon.

Managing Director Horacio Chavez announced the investment during a press conference led by President Claudia Sheinbaum. Chavez stated the funds are intended to adjust the current production line so the same plant can be utilized for electric vehicle assembly. President Sheinbaum noted that a significant portion of these vehicles will target the domestic market to promote electric vehicle adoption across Mexico.

Economy Minister Marcelo Ebrard indicated that the move allows Mexico to reduce imports and diversify its markets. This strategy comes as a response to increasing protectionism from the United States, which has proposed that 50% of North American-built vehicle value must originate in the U.S. to revise trade agreements. The Mexican government aims to use this investment to attract new battery and EV technologies to the region.