June 17, 2025
Kia will maintain its long-term expansion plan in Mexico, without the tariffs imposed by the Donald Trump administration affecting its investments or its export strategy. Strategic […]
Published 23/05/2025
Kia will maintain its long-term expansion plan in Mexico, without the tariffs imposed by the Donald Trump administration affecting its investments or its export strategy.
Strategic Investment in Local Manufacturing
- Kia has already allocated $150 million for its plant in Mexico, where it will produce the K3 subcompact and K4 compact.
- A new investment of approximately $2 million to expand its training and technology center is expected to be announced in the coming months.
Horacio Chávez, general manager of Kia Mexico, reiterated that these investments have not been affected by the 15% tariff on vehicles exported to the US, although he acknowledged that it increases prices in that market.
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Training Center: Key Driver of Growth
Kia reaffirms its commitment to talent development in Mexico through a major expansion of its training center. This facility will be four times larger than the current one, will be in a more accessible area, and will be equipped with cutting-edge technology. The goal is to offer more robust technical training, aligned with the company's global standards, to prepare its workforce for the challenges of an increasingly automated and demanding industry.
- It will allow training more employees at the same time and optimize manufacturing, maintenance, and quality control processes.
- It will also serve as a platform for continuous development, especially given advances in electromobility and new production models.
2026 Sportage SUV and Export Strategy
During the presentation of the 2026 Sportage SUV, Horacio Chávez emphasized that this model is poised to once again become one of the best-selling models in Mexico, driven by sustained sales growth of the K3 and K4 models. He also highlighted that the K4, manufactured exclusively at Kia's plant in Mexico, is already exported to 66 countries, with the United States and Canada being the main markets. In this context, Kia plans to export 280,000 units in 2025, of which approximately 60% will be the K4.
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Solid Outlook Despite Trade Challenges
Despite the complex environment marked by 15% tariffs on vehicles exported from Mexico to the United States, Kia remains steadfast in its growth and investment strategy in the country. The South Korean automaker is strengthening its commitment with a solid production plant, an expanding training center, and a diversified export strategy that spans more than 60 markets. This vision reaffirms Mexico as a key hub for its global production, demonstrating that the company is prepared to overcome trade obstacles without slowing its consolidation in the region.
Are you interested in expanding your automotive operations in Mexico? With a consolidated supply chain, skilled labor, and a strategic location for exports to North America and more than 60 other countries, Mexico is positioned as a key hub for advanced manufacturing. At American Industries, we provide the comprehensive support you need to establish your plant or operations center, taking advantage of local incentives and the dynamism of nearshoring. Contact us and accelerate your entry into the future of the global automotive industry.
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