Kia Invests US$150 Million to Expand Pesqueria Plant

Kia Motors will maintain and expand its operations in Mexico, committing US$150 million to its assembly plant in Pesqueria, Nuevo Leon, as part of its global manufacturing strategy, according to Horacio Chávez, Managing Director, Kia Mexico.

The investment  aims to increase production capacity and bolster exports to international markets. Chávez confirmed that the facility, opened in 2016, is expected to produce 280,000 vehicles by 2025, focusing primarily on the K3 and K4 models. Of that total, 60% will be K4 units destined for export to 66 global markets.

“Kia is maintaining normal operations in Mexico despite the current trade and political environment with the United States,” Chávez told Milenio. “The federal government, under President Claudia Sheinbaum, has shown a willingness to engage with the industry. We have had multiple meetings with the president, allowing the sector to present its concerns.”

Chávez acknowledged that tariffs on Mexican-manufactured vehicles remain high under current US trade conditions but clarified that no immediate changes to Kia’s operations are planned. “The question is how long this uncertainty with the United States will last. It is difficult to predict, but for now, we are operating as usual,” he stated.

In addition to increasing plant capacity, Kia is heavily investing in workforce development. The company is expanding its training center nearly fourfold and dedicating MX$15 million to refurbish each of its 100 dealerships across the country, with partial funding provided by the dealers themselves.

“This level of investment underscores the importance of the Mexican market to Kia,” Chávez said.

Kia’s strategy involves local production of the K3 and K4 models, while other vehicles sold in Mexico are imported: the Sonet from China, Sportage from South Korea, Sorento and Telluride from the United States, and its electric models from South Korea.

Chávez emphasized the company’s manufacturing flexibility, noting that Kia also operates plants in Europe and India, which can adapt to meet shifting global market demands.