Kia EV3 production has officially begun in Mexico after the automaker invested $649 million to expand its manufacturing operations in the country. The move marks the first time Kia has assembled a battery-electric vehicle in Mexico, with exports to the United States expected to begin later this year.
Kia Begins EV3 Production in Mexico
Earlier this year, Kia introduced the EV3 as an affordable electric crossover with up to 320 miles of range. The automaker describes it as a “right-sized all-electric entry SUV.”
According to Reuters, Kia Managing Director Horacio Chavez announced a $649 million investment in Mexico through 2028, focusing on the company’s Pesquería plant in Nuevo León. Production of the EV3 at the retooled facility began on August 4, 2026.
The milestone makes the EV3 the first battery-electric vehicle assembled by Kia in Mexico. Pre-orders have already opened in the country, and the plant is expected to begin exporting the model to the United States later this year.
U.S. Pricing Has Not Been Announced
Kia has not yet announced U.S. pricing for the EV3. The automaker also delayed the model and temporarily paused the larger EV4 because of weak demand for electric vehicles.
However, Kia told Autoblog that the EV3 is expected to reach the U.S. market before the end of 2026.
The company said pricing will depend heavily on the outcome of a revised North American trade agreement. The EV3 is expected to start at around $35,000, placing it alongside the limited-time Chevrolet Bolt and the entry-level Tesla Model 3. A higher price point would increase competition with the approximately $30,000 Nissan Leaf.
Investment Extends Beyond EV3 Production
The upgrades at Kia’s Pesquería plant could also support production of the EV2 in the future. While the EV2 is considered too small for U.S. preferences, it is described as well suited for the European market.
Reuters reported that Mexican Economy Minister Marcelo Ebrard said Mexico is seeking additional export markets as protectionist policies increase in its largest trading partner, the United States.
For the domestic market, local production of the EV3 is expected to reduce imports while providing a relatively affordable electric vehicle option.
Local Supply Chain and Sustainability Plans
The EV3 is expected to launch with approximately 27% local content, with that percentage increasing as more regional suppliers join the production network.
Battery packs will initially be sourced from Asia, while Kia plans to gradually source batteries and other high-value components closer to the Pesquería plant as the regional supply chain expands.
Part of the $649 million investment will fund public and semi-public charging infrastructure connected to Kia’s dealer network. Additional funding will support renewable energy projects and water recycling initiatives at the assembly plant to reduce the EV3’s environmental impact and lower operating costs.
The launch of EV3 production in Mexico represents a significant milestone for Kia’s regional manufacturing strategy as the company prepares to bring the electric crossover to the U.S. market later this year while continuing to expand its local supply chain and production capabilities.
