Kia Corp's Strategic Shift in Mexico: A Latin American Auto Market Play
Kia Corporation has reported record production and sales in Mexico, focusing on the Latin American market amidst U.S. tariff pressures. Following a strategic shift, Kia's Monterrey plant saw a 9.2% production increase between January and August 2025, with 25% of output directed to the growing Mexican market.
- Country:
- South Korea
In a strategic pivot driven by mounting U.S. tariffs, Kia Corp. has recorded its highest production and sales figures in Mexico since the COVID-19 pandemic. According to a report by Pulse from Maeil Business Newspaper Korea, the automaker's Monterrey plant produced 190,000 vehicles from January to August 2025, marking a 9.2% year-on-year increase.
Traditionally a hub for automotive export due to low labor costs and tariff-free access under the USMCA, Mexico's attractiveness has waned as it failed to secure a tariff-reduction agreement with Washington. Currently, Mexican exports to the U.S. face substantial tariffs. This situation has prompted automakers to refocus their strategies towards Latin American markets, with Mexico the second-largest market after Brazil, where sales surged by 9.9% in 2024.
Kia stands among several global automakers, including Toyota, repositioning their Mexican production. Despite the challenges, Kia has increased its domestic market production share by 2 percentage points and now ranks sixth in the Mexican market. This shift comes as plant usage has increased, offering further growth potential even while Chinese automakers accelerate their Latin American expansion amid U.S. tariffs.
(With inputs from agencies.)
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