Kia operations in Mexico stay on track with a $150M investment in its Pesquería plant, aiming for 280,000 assembled K3 and K4 cars despite high US tariffs.
Kia says it won’t shift its production away from Mexico, calling its operations here vital to global plans. The Korean automaker has poured $150 million into its Pesquería plant in Nuevo León to broaden assembly and ramp up exports, Horacio Chávez, Kia Mexico’s national general manager, told MILENIO. Opened in 2016, the facility will roll out 280,000 K3 and K4 cars this year, with 60 percent of that output headed to overseas markets. Chávez noted this investment reflects the brand’s faith in Mexico’s workforce and manufacturing strength.
At full tilt, the Pesquería plant will assemble both the K3 sedan and the K4 fastback through the end of 2025. The company plans to maintain balanced production, with roughly 168,000 K4 units and 112,000 K3 units coming off the line. The K4 model alone accounts for about 60 percent of overall output and represents Kia’s top export here. Executives say the plant’s modular design allows swift line changes and efficient scale-up to meet demand in markets from Latin America to Europe and beyond.
“Given the current commercial and political climate with the president of the United States, Kia is maintaining operations in Mexico; everything remains normal,” Chávez said. He praised President Claudia Sheinbaum’s administration for its support and said officials meet regularly with industry leaders. Still, he cautioned that tariffs on vehicles made in Mexico remain high and could pose challenges if they persist. “For now, there are no changes,” he added, underscoring the company’s resolve to navigate trade hurdles without altering its base.
Kia also committed to boosting skills and sales infrastructure. The company plans to quadruple capacity at its local Training Center, a move that executives say will sharpen technician expertise and speed vehicle rollouts. Meanwhile, dealers will invest 15 million pesos each to renovate all 100 Kia showrooms across Mexico. “All of this speaks to the importance of this market for the company,” Chávez commented, pointing to dealer buy-in as proof of confidence in Mexico’s auto market.
Chávez said the big question now is how long the industry can absorb uncertainty in the United States. He admitted it’s hard to predict policy swings, but he insisted Kia will run operations normally in Mexico. “We’ll keep building cars here and exporting them,” he said, highlighting the plant’s role as a steady anchor in a volatile trade environment.
He praised Mexico’s federal government for its openness. Kia executives meet regularly — including sessions with President Sheinbaum — to discuss industry needs and explore policies that could boost automotive growth. “Each brand has been able to present its situation,” Chávez said. “It shows the industry’s relevance and suggests authorities understand our challenges.” He expects details on support measures to emerge in coming weeks.
Chávez noted Kia’s global plan for the K4 model preceded recent USMCA changes. Mexico’s Pesquería plant will supply K4 cars to 66 markets around the world, he said, with North America playing an important role. That forward-looking strategy demonstrates Kia’s confidence in using Mexico as a hub for its mid-sized models, even as trade rules evolve.
Besides the K3 and K4, Kia imports other models for Mexican drivers. The Sonet compact comes from China, and the Sportage crossover rolls in from South Korea. Larger SUVs like the Sorento and Telluride ship from Kia’s plant in Georgia, U.S. The brand’s electric EV6 also arrives fully built from Korea. Chávez said this mix lets Kia cater to local demand while smoothing production loads across its global network.
Chávez stressed that Kia can shift production if needed. The brand’s plants in Europe and India stand ready to pick up volume or produce specific models. That flexibility, he said, reinforces Mexico’s role as a strategic cornerstone rather than a dispensable site. “We can adjust lines anywhere,” he added, “but for now, our priority is to grow here.”
Kia’s $150 million bet on the Pesquería plant underscores its belief in Mexico’s manufacturing strengths. While tariffs and U.S. policy shifts pose uncertainties, the automaker has locked in investments and government dialogue to keep momentum. The combination of local assembly for K-series cars, dealer upgrades and upgraded training aims to cement Mexico’s place in Kia’s global map. For now, the message is clear: Kia’s operations in Mexico will power ahead.
