South Korean automaker Kia reportedly plans to expand its auto production plant in northern Mexico, Nuevo Leon Governor announced on Twitter.
“More good news! Nuevo Leon consolidates as the ELECTROMOBILITY HUB: KIA once again bets on Nuevo Leon with an investment to expand its plant and produce two KIA car models.”
Samuel Garcia, Nuevo Leon Governor
Unfortunately, the Governor has not yet disclosed further details about the investment, such as the models that will undergo production there.
However, it is interesting to note that he indicated an image of the Kia EV9 SUV on the post. In hindsight, Kia initially unveiled the EV9 at the end of March, which will be produced in South Korea, the US state of Georgia, and may soon be in Mexico. It also released a teaser video for the mysterious EV9 model in early March.
Furthermore, he initially indicated that Kia’s estimated investment is approximately $1 billion, but he later deleted that line from the Tweet.
Kia plans to relocate some EV production lines to Mexico
The Korea Herald reported that the Hyundai-owned brand is currently negotiating with local officials to expand its Mexican plant’s assembly lines as it aims to gain eligibility for US subsidies for electric vehicles.
“We are not building a new plant but (we are) considering transferring some of the production lines for EVs. The move is part of our response to the Inflation Reduction Act in the US. But the exact schedule has not yet been decided.”
Kia official (via The Korea Herald)
The clarification occurred following the Governor’s announcement on Twitter about Kia’s investment in Nuevo Leon. The report further noted that Governor Garcia traveled to Seoul this week for a business forum. Many assume that he met with Kia officials at that time.
Kia’s existing plant in Mexico
Kia already has an existing three million-square-foot plant in Pesqueria. It was initially opened in 2016, close to Monterrey, Nuevo Leon.
Business Standard noted that the plant is “believed” to manufacture two vehicles, including the K3 sedan and the subcompact Pride. It apparently has a production capacity of 400,000 units annually.
That said, a new EV production plant that is anticipated to be near the existing facility will enable the automaker to gain eligibility for federal tax credits of up to $7,500. The new standards under the Inflation Reduction Act require the EV to be produced in North America to qualify for EV tax credits.
See Also:
- Kia releases teaser video of the upcoming EV9 indicating its reveal date
- Kia raises global EV sales target to 1.6 million by 2030
- Wholesale shipments of the Kia EV6 increased in February 2023
- Kia’s wholesale shipments of the EV6 model remain stable in January 2023
- Kia EV6 wholesale shipments had record-breaking sales in March 2023
The prospective new plant will also aid Kia in achieving its goal of selling approximately 1.6 million all-electric models by 2030.
