South Korea's Kia Corporation will invest $649 million to produce and sell fully electric vehicles in Mexico, the company's managing director Horacio Chavez announced on Wednesday during President Claudia Sheinbaum's daily press conference. The investment will adapt an existing production line at Kia's plant in Pesquería, Nuevo León, to manufacture the EV3 model, which until now has been produced only in South Korea, according to economy minister Marcelo Ebrard.

The decision, framed as part of the government's Plan México to boost domestic content and electromobility, will generate 500 direct jobs in 2026 and a further 1,500 by 2030, Ebrard said. The EV3 will launch with an estimated 27 percent national content, a figure the government aims to increase over time. President Sheinbaum noted that a significant portion of production is destined for the domestic market, as her administration seeks to promote EV adoption in Mexico.

The investment also includes construction of a two-megawatt solar park at the industrial complex, with plans to expand to eight megawatts by 2030, and a second wastewater recycling plant capable of reusing about 1,050 cubic metres of water per day—roughly 70 percent of the plant's treated water. Kia Mexico president Andy Kim reaffirmed the company's commitment to the country, calling it “the most strategic and reliable partner” for shared prosperity, and highlighted that one in three Kia Mexico employees is a woman.

Production of the EV3 is scheduled to begin on 4 August 2026. The move comes amid uncertainty in the global automotive industry over trade rules and tariffs, but Ebrard said Kia's decision reflects confidence in Mexico's productivity and investment conditions.