South Korean automaker Kia will invest more than $600 million (€553m) in Nuevo León, Mexico, to expand production capacity, advance electric vehicle manufacturing, and implement sustainability infrastructure at its Pesquería plant. Mexico Business News reported on the announcement, made during a working tour of South Korea led by Nuevo León Governor Samuel García.

The investment will support new production lines, a solar park for clean energy generation, and a water treatment facility to optimise water use under international environmental standards. The project is expected to create at least 300 direct jobs in its first phase.

Kia Mexico CEO Young Sam Kim outlined plans to reinforce industrial operations and integrate environmentally focused initiatives at the facility. Governor García confirmed the scope of the announcement, including solar panels, water treatment plants, and additional sustainable projects.

The Pesquería plant, inaugurated in 2016, has an annual production capacity of up to 400,000 units and has produced more than 2 million vehicles in under a decade. It exports to more than 190 countries.

Alongside its production expansion, Kia Mexico is diversifying its export strategy by reducing reliance on the US market and growing shipments to Europe, Latin America, and Australia. Vehicles exported to the United States accounted for 65% of exports in 2025, down from 81% in 2024.

Horacio Chávez, CEO of Kia Mexico, said: "We are now reaching the European market with our K4 hatchback. There is a strong hatchback segment there, and we intend to continue increasing production volume while exploring additional destinations."

The investment adds to a series of recent major automotive commitments in Mexico, including $763 million (€703m) by Volkswagen in Puebla and $1 billion (€922m) by General Motors in Ramos Arizpe for electric vehicle production beginning in 2026.

Access the full report on Kia's Nuevo León investment here.