South Korean automaker Kia announced Wednesday it will invest US $649 million in Mexico over the next two years to manufacture the EV3 SUV model, the company’s first fully electric vehicle to be produced in the country.
Speaking at President Claudia Sheinbaum’s Wednesday morning mañanera press conference, Kia Mexico CEO Andy Kim said his company’s project fits in with Plan Mexico, the administration’s ambitious economic strategy that seeks to promote industrialization, substitute imports and trigger regional development through 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 investment will be deployed between 2026 and 2028 and includes the expansion and adaptation of Kia’s Pesquería plant in the northern state of Nuevo León in order to receive production of the new vehicle, a compact SUV that until now was assembled exclusively in South Korea.
The company also said that part of the investment will be allocated to environmental and sustainability projects.
According to Economy Minister Marcelo Ebrard, operations will begin on Aug. 4, making Mexico the first country outside of Korea to manufacture the model.
“This is great news because it allows Mexico to produce an electric vehicle with very competitive and advanced features,” Ebrard said at Wednesday’s mañanera.
The project incorporates new industrial technology and more efficient energy systems, and will gradually increase the vehicle’s domestic content, which will start at around 27% and aims to rise with the inclusion of local suppliers.
Production of the new car will create 500 new jobs and later 1,500 additional direct jobs between 2027 and 2030.
Although the Korean automaker has not yet released its production forecasts, President Claudia Sheinbaum assured the press that a significant portion of the production will be destined for the domestic market, a key promise of Plan Mexico.
“The idea is to strengthen the adoption of electric vehicles in the country,” Sheinbaum said.
Kia’s move offers reassurance for Mexico at a time when certainty about the investment environment is scarce due to protectionist measures by the United States and the ongoing review of the United States-Mexico-Canada Agreement (USMCA).
“In a time of such uncertainty regarding the automotive industry […] this decision means that this company […] is seeing investment opportunities in the country,” Ebrard said.
With reports from El Economista, Expansión and La Jornada
