Kia is to invest $649m to set up production of its EV3 electric vehicle at its Pesquería plant in Nuevo León, Mexico.
The investment will be made between 2026 and 2028, covering both domestic sales and exports.
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The funding will also go towards a national charging network, a 2MW solar park, and a wastewater treatment facility capable of recycling 1,050 cubic metres per day.
The plant is projected to create 500 jobs this year, with that figure expected to climb to 1,500 by 2030.
Mexico’s Economy Secretary, Marcelo Ebrard Casaubon, confirmed that the production line at Pesquería will start operations on 4 August.
Kia Mexico president Young Sam Kim (Andy Kim) said the investment reflects the objectives of the government’s Mexico Plan, adding that Kia Mexico aims to be “a strategic and reliable partner” in the country’s development.
Ximena Escobedo, Undersecretary of Industry and Commerce at the Ministry of Economy, said the Mexico Plan’s investment pipeline now includes 1,186 projects worth a combined $404bn, spanning sectors such as automotive and manufacturing.
According to a Reuters’ report, the EV3 is currently built in South Korea.
Kia’s move comes as Mexico navigates an increasingly uncertain climate for investment, shaped by US trade protectionism and fresh scrutiny of the US-Mexico-Canada Agreement (USMCA).
Reuters reported that, during bilateral talks in May, the US proposed revising the agreement to require 50% of the value of vehicles built in North America to originate in the US — a major departure from current rules.
Last month, US President Donald Trump signalled he would not seek to extend the USMCA, triggering annual reviews under the trilateral trade pact.
In May, General Motors also confirmed it would begin producing the Chevrolet Groove and Aveo locally at its Ramos Arizpe plant in Coahuila from 2027, shifting both models from Asian production bases linked to its China joint venture.
