Last updated on April 24, 2015
Kia Motors has announced it will begin selling a new line of compact cars in Mexico in July.
The company, which is an affiliate of Hyundai Motor, is tapping into the growing demand for its products.
Last year, the Hyundai Motor company released its Sonata, Tucson, Elantra and i10 in Mexico.
This year, Kia Motors will sell it US-made Sorento sport utility vehicle, Europe-made Sportage SUV and Korean-produced Forte compact prior to the opening its first plant in Mexico.
The new production plant in Mexico is scheduled to open in the first half of next year and will initially produce the Rio subcompact and Forte compact. The Mexico plant will help alleviate the high neighboring US demand of Kia’s sole factory, which is running at full capacity.
Mexico continues to show steady growth in the car market, being the second-largest in Latin America with an anticipated increase of 3 percent, to 1.16 million vehicles over last year. Mexico’s auto growth, forecast by IHS Automotive, is expected to continue until 2020.
According to Maeil Business Newspaper, automakers in Mexico are exempt from a 20 percent tariff within 10 percent of their local output.