Kia Invests $649 Million to Produce EV3 in Mexico

Kia will begin producing its all-electric EV3 model at its existing plant in Nuevo León, Mexico—a vehicle previously manufactured in Korea—shifting to local Mexican production as of August 4. Horacio Chávez, a Kia board member, stated the company plans to invest $649 million to retool the production line while continuing to utilize the existing factory facilities. Marcelo Ebrard, Mexico’s Minister of Economy, noted this move will help introduce new battery and electric vehicle technologies and reduce reliance on imports. Mexican President Claudia Sheinbaum said the locally produced EV3 will primarily serve the domestic Mexican market. The Mexican government is currently promoting the adoption of electric vehicles. Meanwhile, the United States has recently proposed revising the USMCA (United States-Mexico-Canada Agreement), requiring that 50% of the value of automotive parts used in North American-made vehicles originate from the U.S.—a significant increase from current rules. In response, several automakers, including Toyota and General Motors, have announced plans to shift some of their Mexican production lines to the United States.