Korean Firm Kia to Invest $649 Million in Mexico to Begin Electric Vehicle Production in the Country

ByAlma E. Muñoz and Néstor Jiménez

This article by Alma E. Muñoz and Néstor Jiménez originally appeared in the July 29, 2026 edition of La Jornada, Mexico’s premier left wing daily newspaper.

Mexico City. South Korean company Kia will invest $649 million from 2026 to 2028 to produce an electric vehicle in Mexican territory for the first time, as part of Plan México, reported Marcelo Ebrard, Secretary of Economy. As of today, the investment portfolio includes a total of 1,186 projects with a value of $404 billion.

“In an era of so much uncertainty regarding the automotive industry, the tariffs, the new rules, et cetera, et cetera, the fact that this decision is being made means that this company, which is one of the most important in the world, is experiencing productivity in Mexico and is seeing opportunities, investment in the country,” which, in turn, means technology, jobs, and economic activity, Ebrard maintained.

President Claudia Sheinbaum Pardo highlighted that “thank you very much, this is great news. Kia’s investment shows confidence in our country and the second thing is the boost to electromobility, which means the production of an electric vehicle and the network of stations to be able to charge these vehicles. So, it is very, very good news.”

Ebrard, in turn, added at the mañanera that this is “an effort that has been made so that more and more vehicles destined for our market and also for export are produced in Mexico.”

On August 4, at its facilities in Pesquería, Nuevo León, the company will start up the production line for the vehicle that is currently made in Korea.

This means, he maintained, “the creation of 500 new jobs this year and 1,500 new direct jobs between 2027, ’28, ’29, and ’30. It is great news because it allows us to produce an electric vehicle in Mexico with a series of very advanced features, very competitive, with high national content.”

He specified that the national content will be almost 27 percent “and that is going to keep increasing. It means an expansion of the production possibilities of the automotive industry in our country.”

He stressed that “this is a priority objective of Plan México,” which is to increase national content; “that is, what is produced in Mexico.”

Andy Kim, CEO of Kia México, highlighted that the company has grown hand in hand with the Mexican economy and reaffirmed the company’s commitment to becoming the “most strategic and reliable” partner to contribute to shared prosperity.

The Undersecretary of Industry and Commerce of the Ministry of Economy, Ximena Escobedo, indicated in turn that the projects in the investment portfolio are divided into what is already underway. “That is, what is already in final phases, in planning, and already running, which have a value of $404 billion.”

In turn, she stated, “we are also advancing and strengthening this portfolio with the President’s Investment Office and we already have 13 projects that have immediate authorization.”

She specified that the investments are in telecommunications and the energy sector, as far as the portfolio is concerned.