Kia México made it official on Tuesday. Standing at President Claudia Sheinbaum's morning press conference, Economy Minister Marcelo Ebrard confirmed that the Korean automaker will invest US$649 million to convert its Pesquería complex into a multi-energy plant capable of building combustion and electric vehicles on the same lines. Production of the Kia EV3 — a subcompact electric SUV until now built only in South Korea — starts August 4.
This is Kia's first fully electric vehicle assembled in Mexico, and the second-largest automotive announcement of the year behind GM's US$1 billion commitment in January. The plant already exports to sixty markets. What changes now is that Kia will produce and sell EVs domestically rather than only stamping combustion sedans for export.
Why it matters
The decision came at a moment when Mexico's automotive sector is under pressure. Toyota moved Tacoma pickup production to Texas earlier this quarter. Washington pushed at bilateral talks in May for 50% U.S. content in North American vehicles. Against that backdrop, Kia's decision to retool its existing Pesquería lines — rather than build the long-rumored 'planta espejo' second complex — reads as measured confidence: keep the physical footprint, upgrade what's inside, hedge tariff exposure by localizing content.
The Nuevo León angle is direct. Pesquería employs 2,600 people at the plant itself, with more than 85,000 across the supply chain. The retooling will add 500 jobs in 2026 and 1,500 more direct roles between 2027 and 2030. EV3 will launch with roughly 27% national content — modest for now, but the whole point of the Ebrard message was that this ratio has to grow as Mexican suppliers plug in.
The other side
The number sounds larger than the physical change. Kia's own director general Horacio Chávez was careful to describe it as "an investment made to adjust the production line — the same plant continues to be used." No new construction, no second complex, no mirror plant. The 2015 vision of a doubled footprint at Pesquería is materializing as line conversion, not concrete pouring. That's cheaper and faster to reverse if U.S. trade policy shifts again.
What to watch
Ebrard flagged the real question at the podium: batteries. "What comes next is battery production. If we lose that technological capacity we would be at a disadvantage." Watch for whether Kia's Korean battery suppliers follow the EV3 into Nuevo León, whether the state adds cells or packs to the mix, and whether the promised 2 MW on-site solar park (expanding to 8 MW by 2030) triggers additional utility-scale commitments in the region.
- Investment: US$649 million to retool the existing Pesquería complex
- Production start: August 4, 2026 (EV3 subcompact SUV)
- Jobs: 500 in 2026, plus 1,500 direct roles between 2027 and 2030
- National content: ~27% at launch, targeted to rise with Mexican suppliers
- Sustainability: 2 MW solar park expanding to 8 MW by 2030, second wastewater treatment plant reusing ~1,050 m³/day