Kia’s first three-row electric SUV, the EV9, has seen strong sales in the US since its launch, with nearly 14,000 models sold so far this year. Despite this, Kia plans to delay ramping up production at its Georgia plant until next year, primarily due to the complexities surrounding qualification for the $7,500 federal EV tax credit. The issue stems from the battery assembly requirements, which Kia expects to address by spring 2025 when production will scale up. Hyundai’s new $7.6 billion US facility, which will produce EVs, including the EV9, will not have the battery portion operational until next year, meaning vehicles will only qualify for a $3,750 credit until then.
Kia’s COO emphasized the importance of federal and state incentives in making EVs more affordable for middle- and lower-class buyers. However, the future of the $7,500 tax credit is uncertain, as it may be eliminated if former President Donald Trump is re-elected. Meanwhile, Kia is focusing on leasing options for the EV9, though this approach could also face changes.