Kia increases Mexico production 9.2% in 2025, shifting focus to Latin America due to U.S. tariffs.

Kia is boosting production in Mexico, reaching 190,000 vehicles from January to August 2025—a 9.2% increase from last year—as it shifts focus from U.S. exports to Latin American markets due to ongoing U.S. tariffs. Despite a 25% baseline tariff and a 15% duty on USMCA-compliant vehicles, Kia is expanding output at its Monterrey plant, selling 25% of its production domestically and 75% abroad, with its market share in Mexico rising to sixth place. The K4 compact sedan, launched in August 2024, drives global sales of about 15,000 units monthly. Plant utilization reached 80.4% in the first half of 2025, though it remains below capacity. Meanwhile, Chinese automakers like JAC Motors are also increasing production in Mexico, up 23% year-on-year, targeting Latin America amid U.S. trade barriers.