Marco A. Mares. July 29, 2026 .Amid the tariff storm unleashed by Donald Trump, two Asian automakers, one Japanese and one Korean, are making completely different decisions regarding their operations in Mexico.
It is moving production of the Kia EV3 electric SUV from South Korea to Mexico.
For the first time in its history, the Korean company Kia will produce and market a fully electric vehicle in Mexico.
While Toyota has begun partially withdrawing its production from Mexico and relocating it to the United States.
Toyota is doubling down on its investment in the US to avoid tariffs, minimize trade risks, and lower transportation costs to meet US demand.
Kia, for its part, has decided not only to remain in Mexico but also to increase its investments to begin production of an electric car with increasingly local content.
Kia is making a strong commitment to Mexico as a key manufacturing hub in North America.
The automaker will invest $649 million under the umbrella of the Mexican government's "Made in Mexico" policy.
Initially, the vehicle will have 27% Mexican content, with the intention of gradually increasing that percentage.
Two Asian companies, two paths.
These are two distinct reactions and decisions from two powerful Asian automakers at a time when the global automotive industry is transitioning from combustion technology to electromobility; and precisely when the rules of the game are being changed by the US president.
Each company's reaction is different, as is the level of investment they are about to make.
Toyota will cease production of the Tacoma pickup truck in Mexico and will instead manufacture it in the US. The company plans to invest $3.6 billion in San Antonio, Texas.
This is not surprising, as Toyota has a historical investment total exceeding $60 billion. This latest announcement represents a $10 billion investment package over five years.
Kia's announcement might seem smaller compared to these figures. However, the most significant aspect is its decision to invest in electric vehicle manufacturing in Mexico.
It should be noted that Kia invested $3 billion upon its arrival in Mexico in 2016, and has since accumulated a total investment of approximately $4 billion.
This new investment is presented as part of the Mexican government's "Plan México," which aims to increase domestic content, create jobs, and promote nearshoring.
It will generate 500 jobs in 2026 and up to 1,500 additional jobs by 2030.
Kia also produces models like the K3 and K4 exclusively in Mexico for global export.
Production and exports have increased despite UK tariffs, and Kia has reduced its dependence on the US market from 81% to 65% in recent exports.
Mexico is a Kia export hub, serving approximately 70 countries. During the announcement at President Claudia Sheinbaum's morning press conference, Andy Kim, CEO of Kia Mexico, reaffirmed his commitment to making Mexico the company's most strategic partner.
Marianela Calderón, Kia Mexico's Director of Administration, emphasized the company's commitment to developing talent that will contribute to Mexico's growth as a world-class industrial powerhouse.
Economy Secretary Marcelo Ebrard emphasized the significance of one of the world's leading automotive companies deciding to invest in Mexico, especially during a time of such uncertainty regarding the automotive industry, tariffs, and new regulations.
This signifies that they see investment opportunities and high productivity in Mexico, the official stressed.
That concludes the context and Kia's announcement.
Undoubtedly, the Korean company's commitment reflects its confidence in Mexico's medium- and long-term outlook, the capabilities of its workforce, and its commitment to transferring knowledge to Mexico.
In this sense, it is very positive that these objectives are being achieved so that Mexico can better contribute to the necessary and ever-increasing national content in automotive manufacturing, within the context of the transformation that this industry is undergoing globally.
Time will tell.
https://www.eleconomista.com.mx/opinion/mexico-hub-manufactura-kia-20260729-825768.html
.png)
