Kia confirmed it is considering transferring some of its production lines for EVs to its factory in the state of Nuevo Leon.
that the company is considering an investment in Nuevo Leon.
"We are not building a new plant but 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."KiaThe northern border state of Nuevo Leon is home to a Kia assembly plant in the town of Pesqueria that occupies an 827-acre site. Completed in 2016, the plant has an annual production capacity of 400,000 vehicles per year.
Foreign companies have been ramping up investments in the state located on the US-Mexico border hoping to take advantage of the Inflation Reduction Act that offers significant tax cuts for North American-made EVs and components., which is considered to be an industrial capital of Mexico. Nuevo Leon is home to approximately 2,600 companies, including 270 Korean firms, that employ 600,000 workers.
While Mexico's domestic EV market is relatively modest, it is growing fast as it benefits directly from free trade agreements with the US and other subsidiary programs.
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