The announcement was made during Mexican President Claudia Sheinbaum’s daily press conference, where Kia executives and government officials outlined plans to start production of the fully electric Kia EV3 at the company’s manufacturing facility in Nuevo León.

EV3 Production Begins in August

According to Kia Mexico Managing Director Horacio Chavez, production of the Kia EV3 will commence on August 4 at the company’s existing assembly plant in the northern Mexican state of Nuevo León.

The EV3 is currently manufactured in South Korea, making the Mexican facility the latest addition to Kia’s global electric vehicle production network.

Rather than constructing a new factory, Kia will modernize its existing production lines, allowing the company to efficiently transition toward electric vehicle manufacturing while leveraging its current infrastructure.

Investment Targets Manufacturing Upgrades

The $649 million investment will primarily fund upgrades to the production line required for electric vehicle assembly.

Chavez emphasized that the project focuses on adapting the existing manufacturing facility rather than expanding its physical footprint, enabling faster implementation and lower capital costs compared with building a new plant.

The investment reflects the growing trend among global automakers to retrofit existing facilities as demand for electric vehicles continues to rise.

Supporting Mexico’s EV Strategy

Mexico’s Economy Minister Marcelo Ebrard highlighted that local production of the EV3 strengthens the country’s role in the global automotive supply chain while supporting the government’s broader industrial development strategy.

President Claudia Sheinbaum noted that a significant portion of the vehicles produced in Mexico will be sold domestically, aligning with government efforts to encourage greater adoption of electric vehicles and accelerate the country’s transition toward cleaner transportation.

Expanding local EV production could also improve vehicle availability and reduce dependence on imported electric models.

Strengthening North American Manufacturing

The move further reinforces Mexico’s importance as a manufacturing hub for global automakers.

With established automotive supply chains, competitive production costs, and proximity to major North American markets, Mexico has become an increasingly attractive destination for electric vehicle investment.

For Kia, local EV production offers greater flexibility in serving regional demand while enhancing supply chain efficiency across North America.

Outlook

Kia’s decision to localize EV3 production in Mexico represents another step in the global automotive industry’s shift toward electrification. By investing in existing manufacturing capacity rather than building new facilities, the company can accelerate production while controlling costs. As Mexico continues attracting electric vehicle investments from international automakers, the country is strengthening its position as one of North America’s key EV manufacturing centers, supporting both domestic adoption and regional export opportunities.