Kia will invest US $649 million to manufacture electric SUVs in Mexico

South Korean automaker Kia announced Wednesday it volition put US $649 cardinal successful Mexico implicit the adjacent 2 years to manufacture the EV3 SUV model, the company’s archetypal afloat electrical conveyance to beryllium produced successful the country. 

Speaking astatine President Claudia Sheinbaum’s Wednesday greeting mañanera property conference, Kia Mexico CEO Andy Kim said his company’s task fits successful with Plan Mexico, the administration’s ambitious economical strategy that seeks to beforehand industrialization, substitute imports and trigger determination improvement done multi-million dollar investments. 

🇲🇽 ¡Buenas noticias para #México!

La presidenta @Claudiashein anunció que KIA México invertirá 649 millones de dólares para trasladar a nuestro país la producción de vehículos eléctricos que hoy se fabrican en Corea del Sur.

Esta decisión refleja la confianza en México y… pic.twitter.com/FYT8Bs2tQZ

— Citlalli Hernández Mora (@CitlaHM) July 29, 2026

The concern volition beryllium deployed betwixt 2026 and 2028 and includes the enlargement and adaptation of Kia’s Pesquería works successful the bluish authorities of Nuevo León successful bid to person accumulation of the caller vehicle, a compact SUV that until present was assembled exclusively successful South Korea.

The institution besides said that portion of the concern volition beryllium allocated to biology and sustainability projects.

According to Economy Minister Marcelo Ebrard, operations volition statesman connected Aug. 4, making Mexico the archetypal state extracurricular of Korea to manufacture the model. 

“This is large quality due to the fact that it allows Mexico to nutrient an electrical conveyance with precise competitory and precocious features,” Ebrard said astatine Wednesday’s mañanera. 

The task incorporates caller concern exertion and much businesslike vigor systems, and volition gradually summation the vehicle’s home content, which volition commencement astatine astir 27% and aims to emergence with the inclusion of section suppliers.

Production of the caller car volition make 500 caller jobs and aboriginal 1,500 further nonstop jobs betwixt 2027 and 2030. 

Although the Korean automaker has not yet released its accumulation forecasts, President Claudia Sheinbaum assured the property that a important information of the accumulation volition beryllium destined for the home market, a cardinal committedness of Plan Mexico. 

“The thought is to fortify the adoption of electrical vehicles successful the country,” Sheinbaum said.

Kia’s determination offers reassurance for Mexico astatine a clip erstwhile certainty astir the concern situation is scarce owed to protectionist measures by the United States and the ongoing reappraisal of the United States Canada Mexico Agreement (USCMA). 

“In a clip of specified uncertainty regarding the automotive manufacture […] this determination means that this institution […] is seeing concern opportunities successful the country,” Ebrard said. 

With reports from El Economista, Expansión and La Jornada