(source : ANI) ( Photo Credit : ani)
Kia is seeing a big boost in Mexico, hitting its highest production and sales numbers there since the COVID-19 pandemic. The South Korean automaker is adapting to tough U.S. auto tariffs by focusing more on Latin American markets instead of shipping cars north.
From January to August 2025, Kia’s plant in Monterrey churned out 190,000 vehicles—a 9.2% jump from the year before, according to data from Mexico’s National Institute of Statistics and Geography (INEGI). Sales inside Mexico reached over 72,000 units, the most since 2020. This shift comes as U.S. pressure on auto tariffs, in place for six months, pushes companies like Kia to rethink their strategies.
Mexico has always drawn big automakers with cheap labor and easy access to the U.S. under the USMCA trade deal. In 2024, giants like General Motors, Ford, and Chrysler led production there, exporting over 90% of their output to the United States. But things have changed. Without a new tariff cut deal with Washington, Mexican cars heading to the U.S. now face a standard 25% duty. Even those qualifying under USMCA rules—which require 75% of parts from North America—still get hit with a 15% tariff.
Still, automakers aren’t pulling back. They’re ramping up in Mexico to tap into growing Latin American demand. Take Toyota: It boosted Mexican production by 40.5% this year to sell more locally. Mexico ranks as the region’s second-biggest auto market after Brazil, with 1.4 million vehicles sold in 2024—a 9.9% rise from 2023. Together, Mexico and Brazil make up 70% of new car sales across Latin America.
Kia is right in the mix, climbing to sixth place in Mexican market sales. Its plant’s output rose 9.2% year-over-year, with 25% staying for domestic buyers and 75% going to exports. That’s up 2 percentage points in local sales share from 2024. The Monterrey facility, which opened in 2016, took a hit from U.S. tariffs and even paused making the Hyundai Tucson for the American market back in April 2025.
A bright spot has been the Kia K4, an affordable compact sedan that launched in August 2024. It appeals widely in the U.S. and emerging Latin American spots, averaging 15,000 global sales per month. That makes it Kia’s second-top export model, right behind the Sportage, and it’s helping steady operations.
The plant has plenty of room to grow, too. Utilization climbed to 80.4% in the first half of 2025, up from 67.7% in 2023—though it’s still the lowest among Kia’s five worldwide facilities.
Meanwhile, Chinese brands locked out of the U.S. by tariffs are eyeing Latin America hard. JAC Motors, the only Chinese automaker with a Mexican plant, produced over 20,000 vehicles there from January to August 2025—a 23% increase from last year.
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