MEXICO (Web Desk) – South Korean automaker Kia has announced a major expansion of its electric vehicle manufacturing operations in Mexico, confirming a $649 million investment to begin production of its fully electric EV3 model at its plant in Nuevo Leon. The move is expected to strengthen Mexico’s growing role as a regional hub for electric vehicle production while supporting the country’s push toward cleaner transportation.
The announcement was made during President Claudia Sheinbaum’s daily press conference, where Kia Mexico Managing Director Horacio Chavez outlined the company’s investment plans. According to Chavez, the funds will primarily be used to modernise and adapt the existing production line rather than construct a new manufacturing facility.
Production of the Kia EV3, currently assembled in South Korea, is scheduled to begin in Mexico on August 4. Economy Minister Marcelo Ebrard said the transition reflects confidence in Mexico’s skilled workforce and well-established automotive supply chain.
“The investment allows the same plant to continue operating while preparing it for next-generation electric vehicle production,” Chavez said during the briefing.
President Sheinbaum welcomed the decision, noting that a significant share of the Mexican-built EV3 vehicles will be sold in the domestic market. The government has been encouraging the adoption of electric vehicles through policies aimed at reducing emissions, improving energy efficiency, and strengthening the country’s automotive industry.
The investment also reinforces Mexico’s position as one of North America’s leading automotive manufacturing centres. Global vehicle manufacturers continue expanding production in the country due to its competitive manufacturing costs, skilled labour force, and strategic trade access to the United States and Canada.
For Kia, the move represents another milestone in its global electrification strategy. The company has been rapidly expanding its portfolio of battery-electric vehicles, including the EV6, EV9 and the compact EV3, as consumer demand for zero-emission vehicles continues to grow worldwide.
Industry analysts believe local production of the EV3 could improve supply efficiency, reduce transportation costs and shorten delivery times for customers across the Americas. Manufacturing in Mexico may also help Kia respond more quickly to changing market demand while strengthening its regional supply chain.
The Nuevo Leon facility has been an important production centre for Kia since operations began in 2016. The latest investment will introduce new manufacturing technologies and production processes specifically designed for electric vehicles while maintaining existing operations.
Mexico has attracted billions of dollars in automotive investments in recent years as manufacturers accelerate the transition from internal combustion engines to electric mobility. Government officials expect these investments to generate new employment opportunities, increase exports and support the development of local suppliers involved in EV production.
Kia’s decision underscores growing confidence in Mexico as a destination for advanced vehicle manufacturing. As competition intensifies in the global electric vehicle market, expanding production closer to key consumer markets has become an increasingly important strategy for international automakers.
With production set to commence next week, the EV3 project marks another significant step in Kia’s long-term commitment to sustainable mobility while contributing to Mexico’s ambition of becoming one of the leading electric vehicle manufacturing hubs in the Americas.
