Hyundai Prepares Hybrid Engine Production in Pesquería

Hyundai WIA concluded 2025 amid testing at its plant in Pesquería, Nuevo León, to start the year with the production of a new 1.6-liter hybrid engine, according to press reports in South Korea.

The report indicates that the division of the South Korean conglomerate Hyundai Motor Group conducted validation tests on manufacturing processes and product quality in mid-December, with a view to beginning mass production this month.

According to Business Korea, this will be the first time that Hyundai WIA has produced hybrid engines, which will be supplied to the Kia plant, located in the same industrial complex and where the K4 model is assembled, the electrified version of which will debut in the second half of this year.

Hyundai WIA is a subsidiary focused on the production of powertrain modules and components, such as engines, transmissions, constant velocity joints, and 4WD systems, as well as robots and smart factory solutions.

According to the report, Hyundai WIA's decision to produce hybrid engines in Mexico “is a strategic response to optimize factors such as costs, logistics, and proximity to key markets.”

“The automotive industry depends on complex global supply chains, and the choice of production location is crucial to maintaining competitiveness. Mexico's role as an important automotive manufacturing hub, thanks to its skilled workforce, favorable trade agreements, and proximity to the U.S. market, further supports this decision,” the article states.

The Kia Pesquería plant ended 2025 with a production of more than 288,000 vehicles, a figure that exceeded the previous year's volume by 6.4%.

In the domestic market, Kia's sales exceeded 111,000 units, representing a 6.5% growth compared to 2024, securing fifth place with a 7.3% market share.

Its subsidiary Hyundai remained in eighth place, with a 3.6% share and deliveries of 54,500 vehicles. Overall, the South Korean group surpassed Toyota and Volkswagen in sales to rank third, behind only Nissan and General Motors.

Also last year, sales of the Kia K4 exceeded 140,000 units in the US market for the first time.