Audi to invest $1 billion in electric vehicle projects in Mexico

German automaker Audi will invest 1 billion euros ($1.08 billion) in electric vehicle projects in the Mexican state of Puebla, the state's governor said Tuesday.

German automaker Audi will invest 1 billion euros ($1.08 billion) in electric vehicle projects in the Mexican state of Puebla, the state's governor said Tuesday.

The investment will lead to the creation of 500 new jobs, the government of Puebla said in a statement.

Audi Mexico CEO Tarek Mashhour and Puebla Governor Sergio Salomon aim to turn the state into a hub for electric vehicles, according to the statement.

Audi Mexico has already begun installing the infrastructure and equipment necessary for the production of a car with "e-tron" - or all-electric - equipment, the statement said.

"Investor confidence in Mexico is strengthening, as there is certainty that our country is growing economically," Governor Salomon said through his X account on Tuesday.

Audi, which belongs to the Volkswagen group, has a plant in Mexico in the city of San José Chiapa, in Puebla, where it currently employs 5,000 people, according to company data.

His comments came hours after Mexico's president-elect Claudia Sheinbaum attempted to calm investor concerns about a judicial reform proposal, pledging that the country would maintain its rule of law while saying she planned to press ahead with reforms.

Audi CEO Gernot Doellner said in March that the automaker was pursuing its electric vehicle strategy despite facing challenges this year.

Collaboration: Grupo Auge | Reuters (International).