Kia will invest $649 million (about 940 billion won) in Mexico to build out electric-vehicle production, renewable energy, and charging infrastructure.
On the 29th (local time), Horacio Chavez, head of Kia Mexico, attended President Claudia Sheinbaum's regular press conference and unveiled the investment plan.
Kia will modify the production line at its Pesquería plant in Nuevo León state to produce the small electric sport-utility vehicle (SUV) "EV3." The line will go into full operation starting Aug. 4.
The project is expected to create 500 jobs this year. Between 2027 and 2030, an additional 1,500 direct jobs are expected.
Chavez said, "We modified the production line to make full use of the existing plant," adding, "By producing and selling Mexican-made electric vehicles for the first time, we will strengthen Mexico's industrial and technological capabilities."
Marcelo Ebrard, Mexico's Minister of Economy, said, "The initial domestic content rate for the EV3, which had been produced entirely in Korea, will start at 27% and expand gradually," and he praised Kia for its trust in Mexico despite uncertainties in the international trade environment.
Beyond EV production, Kia plans to invest in building a solar power plant in the Pesquería industrial complex and in installing charging infrastructure in public spaces.
President Sheinbaum said, "Kia's investment shows trust in our country," adding, "A significant portion of the electric vehicles produced will be supplied to Mexico's domestic market."