Seoul

Amid ongoing U.S. auto tariffs, Kia Corp. has recorded its highest production and sales in Mexico since the COVID-19 pandemic, shifting focus from U.S. exports to Latin American markets, according to Pulse, the English service of Maeil Business Newspaper Korea. Data from Mexico’s National Institute of Statistics and Geography (INEGI) show that Kia produced 190,000 vehicles at its Monterrey plant between January and August 2025, up 9.2% from last year. Domestic sales also surged, topping 72,000 units—the highest since 2020.

Mexico has been attractive to automakers due to low labor costs and tariff-free U.S. access under USMCA. Companies like General Motors, Ford, and Chrysler exported over 90% of their output to the U.S. in 2024. However, the lack of a new tariff agreement with Washington has reduced this advantage. Current U.S. tariffs include a baseline 25% duty, with even USMCA-compliant vehicles facing 15% tariffs.

Despite these challenges, global automakers are expanding Mexican production for Latin American markets. Toyota, for instance, increased output by 40.5% in 2025 to boost regional sales. Mexico is Latin America’s second-largest auto market after Brazil, with 1.4 million units sold in 2024.

Kia now sells 25% of its Mexican output domestically, up 2 percentage points from 2024, ranking sixth in local sales. The success of the K4 sedan, launched in August 2024, has stabilized production, averaging 15,000 units monthly. Plant utilization rose to 80.4% in early 2025, leaving room for growth. Chinese automakers, like JAC Motors, are also expanding in Mexico, producing over 20,000 vehicles through August 2025, up 23% year-on-year.