Kia Motors Will Produce New Electric Car in Nuevo Leon

Samuel García, Governor of Nuevo Leon, announced on May 15, 2023, that he had negotiated the expansion of the Kia Motors facility located in the municipality of Pesqueria. This expansion will allow the Korean company to produce its new EV9 electric car, which according to its website, is fully electric and sets a new standard for this kind of vehicle. Through this agreement, four electric models could soon be produced in Nuevo Leon by Tesla, Kia, Hyundai and Navistar.

The deal was made after García visited Kia’s facilities in Seoul, South Korea, as part of his tour through the country and Taiwan, to attract new investment opportunities for Nuevo Leon. "Nuevo Leon’s moment is today. We say this with great pride and are very happy to announce that Kia is part of it. This economic boom will benefit everyone in the state with better jobs, a healthier environment and better conditions for investments and sustainable mobility, so we can improve our quality of life", García stated. Additionally, the governor thanked Eui Chul Jeon, President, KIA’s Strategic Business Planning, for choosing Nuevo Leon for this project. 

Kia’s decision comes after Tesla confirmed the construction of a gigafactory in Nuevo Leon in February 2023, which will be the first of its kind in Latin America and the largest in the world. Elon Musk’s company is expected to make an initial investment of US$5 billion and generate between 35,000 and 40,000 formal jobs. The government of Nuevo Leon stressed that this will represent an increase of between 20% and 25% in the average wage of state workers. According to García, the plant could begin operations next year, after receiving the final permits for its construction.

García also announced that during his visit to Korea, he agreed on a green transition program for MSMEs with the Global Green Growth Institute (GGGI), through which interested small businesses will be able to achieve net zero emissions. The budget for the program will reach US$15 million. "There are going to be many opportunities to transition toward electromobility and all these new sciences that generate wealth in a sustainable way," García said.

Kia Motors' plant in Nuevo Leon began operations in May 2016. It has a production capacity of 400,000 vehicles per year and employs around 3,000 people. Currently, it produces several car models, including Kia Forte and Kia Rio.