KIA to Invest $649 Million in Mexico for Electric Vehicle Production: The Winning State

The Mexican automotive industry has added a new strategic focus towards energy transition. KIA Mexico will invest $649 million between 2026 and 2028 to produce electric vehicles in the country. The announcement was made this Wednesday by the Secretary of Economy, Marcelo Ebrard, who confirmed that the South Korean automaker will commence operations of a new production line on August 4, 2026. The investment includes the production of the KIA EV3, the company’s first fully electric vehicle to be manufactured and commercialized in Mexico, in addition to developing infrastructure related to charging solutions to promote the adoption of this technology. During the morning press conference, President Claudia Sheinbaum highlighted that the arrival of this project signifies confidence in Mexico at a crucial moment for the global automotive industry.

“This means the production of an electric vehicle and the network to be able to charge these vehicles, the stations that will allow charging. So, it is very, very good news,” stated the president.

In Which State Will KIA Invest in Mexico?

KIA’s decision to manufacture its first electric vehicle in Mexico consolidates Nuevo León as one of the country’s primary automotive hubs. The state, particularly the municipality of Pesquería, has become a strategic point for advanced manufacturing due to its industrial infrastructure, geographic location, and connection to international markets.

According to Marcelo Ebrard, the investment will create 500 new jobs during 2026 and add an additional 1,500 direct jobs between 2027 and 2030, while also strengthening the participation of national suppliers within the production chain.

“The fact that this decision is being made means that this company sees productivity in Mexico, it sees investment opportunities in Mexico,” stated the Secretary of Economy, referring to the project’s impact amidst global uncertainty facing the automotive sector.

One of the most significant aspects of the investment will be the gradual increase in the vehicle’s national content. Ebrard explained that at the start of operations, the unit will have approximately 27% national integration, a percentage that will increase as the project progresses. This factor is strategic for Mexico, as the automotive industry seeks to strengthen local suppliers of electrical components, batteries, technological systems, and specialized manufacturing. The initiative also aligns with the objectives of Plan México, a strategy aimed at boosting national production, attracting investments with greater technological sophistication, and strengthening sectors considered priorities for economic development. In this regard, the arrival of the KIA EV3 not only represents a new assembly line but also an opportunity to expand Mexican participation within an industry moving towards sustainable mobility models.

KIA Mexico Commits to Renewable Energy, Water, and Sustainable Mobility

In addition to electric vehicle production, KIA Mexico announced that the investment will be accompanied by projects focused on environmental sustainability, energy efficiency, and responsible resource use. Andy Kim, President of KIA Mexico, stated that the company’s new investments align with the objectives of Plan México and demonstrate the company’s commitment to the country.

“KIA Mexico will be your most strategic and reliable partner to achieve shared prosperity,” he expressed.

Marianela Calderón, Director of Administration at KIA Mexico, explained that the company’s growth strategy is based on four main pillars:

Talent development and personnel strengthening.
Use of renewable energy.
Responsible water management.
Promotion of electric mobility.

Among the planned actions is the construction of a solar park with an initial capacity of 2 megawatts, with plans to expand its generation to 8 megawatts by 2030. Furthermore, the company will develop a second recycling plant that will allow for the reuse of approximately 70% of the treated water used in its operations, reducing the environmental impact of its industrial processes. These projects are part of a global trend in the automotive industry, where companies not only aim to manufacture electric vehicles but also transform their production plants under sustainability criteria.

Horacio Chávez, Commercial Director of KIA Mexico, highlighted that the EV3 will mark a turning point for the company in the country, becoming the first fully electric model produced and sold by the firm in Mexican territory.

“For the first time in our history, we will produce and commercialize a fully electric vehicle in Mexico,” he affirmed. The model will be able to charge in approximately 30 minutes, a feature designed to facilitate consumers’ transition to new mobility alternatives.