Kia Begins EV3 Production in Mexico with $640 Million Investment
2026-08-03 14:16
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en.Wedoany.com Reported - Kia has confirmed that production of its all-electric SUV model, the EV3, will take place at its Pesquería plant in Nuevo León, Mexico, with official production starting this month. The EV3, named World Car of the Year in 2025, features a compact SUV body and carries forward the design language of Kia's seven-seat electric SUV, the EV9.

The EV3 is built on the 400-volt version of the E-GMP platform co-developed by Hyundai and Kia. The entry-level model is equipped with a 58.3 kWh battery and a front-wheel-drive electric motor producing 201 horsepower, with an estimated driving range of 220 miles. The base version is expected to retail at approximately $35,000. The vehicle includes a NACS charging port, with a 10% to 80% charge time of around 30 minutes. Optional upgrades include an 81.4 kWh battery or a dual-motor configuration with 261 horsepower; the single-motor model with the larger battery has an estimated range of 320 miles. With the optional GT performance package, output rises to 288 horsepower, and that version is expected to be priced at just under $50,000.

The EV3 measures approximately 170 inches in length, making it 3 inches longer than the Volvo EX30 and 9 inches shorter than the Chevy Trax. Inside, it features two 12.3-inch screens and a 5.3-inch climate control display, totaling more than 30 inches of screen area. Wireless Apple CarPlay, wireless Android Auto, i-Pedal 3.0 adaptive regenerative braking, Forward Collision-Avoidance Assist, and Lane Keeping Assist are all standard, while higher trims also offer Highway Driving Assist 2.

Kia EV3 interior

When the EV3 was unveiled two years ago, it was widely expected to be built at Kia's plant in West Point, Georgia, in the United States. After U.S. immigration officials raided Hyundai's battery plant outside Savannah last year and detained hundreds of South Korean citizens, Kia adjusted its North American production strategy. Earlier this year, the company indicated it had no plans to bring the EV4, built on the same platform, to the U.S. market, while the EV3 was confirmed for production in Mexico instead. Between now and 2028, Kia will invest $640 million in the region, including funding for a national charging network, a 2-megawatt solar park, and a wastewater treatment facility capable of processing 1,050 cubic meters of water per day. Once the plant is fully operational, it is expected to create approximately 1,500 new local jobs. The EV3 is slated to go on sale in the United States later this year, and Kia also anticipates the model will attract buyers in Central and South American markets.

Kia EV3 2027 model

Mexico's Secretary of Economy, Marcelo Ebrard, noted that the EV3 will launch with a local content share of 27%, a figure expected to rise as investment progresses. High-value components, particularly batteries, will initially still be imported from Asia, as the Mexican plant currently handles full vehicle assembly without large-scale production of key parts. Boosting domestic value-added content is a core objective of the Mexican government's industrial strategy, "Plan México."

Industry media outlet Electrive reports that the 27% local content figure also carries political significance. In May of this year, the United States proposed during renegotiations of the North American trade agreement that at least 50% of the value of vehicles produced in North America should originate in the U.S. If adopted, that proposal would fundamentally alter the current rules of origin, which calculate value added across the entire North American region and treat Mexican and Canadian production on equal footing.

Ebrard believes that, in the face of growing trade protectionism from its largest trading partner, Mexico is pursuing the opposite strategy: rather than shifting production abroad, it aims to attract advanced technologies—such as battery manufacturing and electric vehicle production—to remain within the country, thereby reducing imports and strengthening domestic industry. In this context, manufacturers like Toyota and General Motors are moving capacity to the United States, while Kia is expanding its manufacturing footprint in Mexico. According to Mexico's Ministry of Economy, the country currently has 1,186 investment projects at various planning stages, with a total value of $404 billion. More than 2,000 South Korean companies are already operating in Mexico, and Mexico and South Korea agreed earlier this year to deepen economic cooperation. Kia's decision to expand local EV production aligns with the Mexican government's push to strengthen domestic manufacturing.

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