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Friday, September 20, 2024

Kia ready to scale US EV9 manufacturing regardless of a scorching gross sales begin


Though its first three-row electrical SUV has been a success within the US up to now, Kia will wait till subsequent 12 months to scale up manufacturing. Kia is easing the EV9 into manufacturing at its West Level, Georgia, plant because it waits for it to qualify for the $7,500 federal EV tax credit score.

After launching the three-row electrical SUV within the US final December, Kia has already bought almost 14,000 fashions this 12 months.

With one other 2,388 bought in August final month, EV9 gross sales reached 13,874 via the primary eight months of 2024. The expansion helped propel Kia to its finest US gross sales month in firm historical past, its second straight month topping the report.

Regardless of the recent begin, Kia is ready to scale up EV9 manufacturing within the US. Kia America COO and govt vice chairman Steven Heart informed Automotive Information the choice comes over complicated {qualifications} to qualify for the $7,500 tax credit score, notably the battery meeting necessities.

Kia’s first EV9 rolled off the manufacturing line at its GA plant in Might. Nevertheless, it’s going to wait till the spring to ramp up output.

Kia-EV9-production-US
Kia EV9 manufacturing begins in Georgia (Supply: Kia)

Kia is easing the EV9 into manufacturing within the US

The EV9 was anticipated to be the primary Hyundai Motor Group automobile to qualify for the total $7,500 EV tax credit score.

Hyundai Motor will open the doorways at its huge new $7.6 billion Metaplant America subsequent month, the place it’s going to construct new Hyundai, Genesis, and Kia EVs. The up to date 2025 IONIQ 5 would be the first to roll off the meeting line later this 12 months.

The battery portion will not be anticipated to come back on-line till subsequent 12 months, so autos constructed on the facility will solely obtain a $3,750 credit score.

Kia-EV9-production-US
2024 Kia EV9 GT-Line (Supply: Kia)

Hyundai Motors’ three way partnership with SK On is predicted to start operations within the second half of 2025. The partnership will safe a US battery provide for Hyundai, Genesis, and Kia EVs within the US. Kia America’s COO didn’t reveal the place the EV9’s batteries will probably be constructed.

Heart did say the incentives (each federal and state) are a “large leveling discipline by way of the worth of vehicles.”

Kia-EV9-GT-Line-interior
Kia EV9 GT-Line inside (Supply: Kia)

If the $7,500 tax credit score have been eradicated, as former President Donald Trump has stated he plans to do if elected, it will “affect numerous middle-class and beneath patrons,” Heart defined.

In accordance with Motor Intelligence, Kia’s EV9 was among the many most discounted autos within the US in June. The EV9 had a mean low cost of $18,081.

Kia EV9 Trim MSRP
(together with $1,495
vacation spot charge)
EPA Est. Vary
(miles)
Gentle RWD $56,395 230
Gentle Lengthy
Vary RWD
$60,695 304
Wind e-AWD $65,395 280
Land e-AWD $71,395 280
GT-Line e-AWD $73,900 270
2024 Kia EV9 trim costs and vary

Regardless of a scorching gross sales begin, it appears to be like like Kia will wait till subsequent 12 months to scale up EV9 manufacturing for US patrons. Till then, the corporate will proceed to lean into leasing as an choice.

Nevertheless, even that loophole is “very fragile,” because it might nonetheless be revoked, Heart defined.

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