Amidst persistent challenges in the electric automotive landscape, South Korean manufacturer Kia Motors is reportedly planning to leverage its Mexican plant to produce its EV3 e-SUV to qualify for substantial tax credits.

Positioned as a strong contestant in the mushrooming market for compact & affordable EVs, the Kia EV3 promises to redefine accessibility with a potential sub-$30,000 price tag in the U.S. market. It may be noted here that the U.S. government offers tax credits of up to $7,500 on the purchase of new EVs build in North America, including Mexico.

According to a recent article published in Korea's Business Post, Kia could commence production of the EV3 at its Monterrey, Mexico-based manufacturing facility sometime in the second half of 2025. A number of other publications also made similar claims, citing anonymous sources, but no such plans have been officially revealed by the manufacturer.

For the highly-competitive market of the U.S., the Kia EV3 has a target price tag of $35,000, but it is expected to end up even cheaper as its production in Mexico will make it eligible for the American government’s federal tax credits that are being offered to encourage consumers’ shift from ICEs to electric powertrains. Thus, the starting price tag of the EV in question will likely fall in the sub-$30,000 range.

Kia's manufacturing plant in Monterrey, Mexico, has been active since the year of 2016. The South Korean manufacturer is already using this manufacturing facility to produce vehicles like the Rio and Forte. The timing of the aforementioned report also makes good sense as the EV3 is all set to go on sale in the home market of Korea as soon as next month. European markets will get it near the end of current year. In the U.S., it should be available sometime next year. Thus, it is not an unrealistic timeline for the company to set up the Monterrey-based manufacturing facility to produce the EV3.

If production of the Kia EV3 really takes place in Mexico, the EV will become eligible for attractive tax credits that will make the vehicle more accessible to a broader spectrum of prospective buyers. The combination of its impressive projected range, high-tech features and competitive pricing of the EV, the automotive world awaits eagerly how this bold move of the Korean automaker unfolds.