Kia is putting the brakes on production of America's first three-row electric SUV. Despite the EV9's successful debut, new concerns about the EV tax credit are reportedly slowing Kia down – at least for now.
After another record-breaking US sales month in October, Kia said the impressive growth was driven by “strong demand” for its electrified lineup.
Kia sold more than 69,900 vehicles last month, up 16% from the previous record in October 2023. Electric vehicles (EVs) led the growth, with sales up 70% year-on-year (YOY). Plug-in hybrid (PHEV) and hybrid (HEV) sales increased by 65% and 49%, respectively.
One of the biggest factors driving the increase in Kia's sales numbers is the addition of the first three-row electric SUV, the EV9.
After delivering the first models last December, Kia has already sold nearly 18,000 EV9s in the US through October. That's more than its first electric vehicle, the EV6, which had nearly 17,700 models sold in the first ten months of 2024.
Despite the early success, Kia is reportedly planning to slow down production due to new concerns over the federal EV tax credit.
Kia is making less of the EV9 rollout in the US than EV tax credit rules
In accordance with Korea HeraldHyundai Motor Group is rolling out the Kia EV9 at its new $7.6 billion EV production facility in Georgia.
After starting production at its new giant Hyundai Motor Group Metaplant America (HMGMA) last month, EV9 production has already been put on the back burner.
Industry sources said Hyundai produced only 21 EV9s in the third quarter. Only one of those was sold in the US. Meanwhile, Kia still sells an average of 1,800 EV9 models every month.
Most EV9 models, even those in the US, are still built at Kia's Korean manufacturing facility. In addition, SK On manufactures its battery cells in China.
Because of this, the three-row electric SUV is only eligible for a $3,750 tax credit. “The EV9 is not eligible to benefit from the full benefits of the IRA due to the battery issue, as well as other factors, including price,” explained a Kia executive.
While EV9 prices start around $55,000, premium configurations, such as the GT-Line model, cost more than $80,000, which exceeds the IRA limit for SUVs and pickups ($80,000).
| 2025 Kia EV9 Trim | Starting price* |
| Standard Light Distance | $54,900 |
| Long Distance Light | $59,900 |
| The wind | $63,900 |
| The world | $69,900 |
| The GT-Line | $73,900 |
Hyundai is producing a fast track in their GA battery area with SK On for compliance. The plant is expected to have an annual capacity of 35 GWh, enough for more than 500,000 EVs. The Korean automaker is building another battery plant with LG Energy in GA with an expected annual capacity of 30 GWh.
With President-elect Trump's team reportedly planning to kill the EV tax credit, things could get even more complicated next year.
“Reducing EV subsidies would eliminate the benefits of foreign automakers with US facilities,” explained Kim Pil-su, a professor of automotive engineering at Daelim University. If so, Kia will likely need to increase the compensation.
Kia's EV9 is already among the most discounted EVs in the US. In accordance with Motor IntelligenceAverage discounts for the EV9 reached more than $18,000 this summer.
The company is currently offering $7,500 in Customer Cash, a $1,500 donation for Tesla owners and renters, and a seasonal up to $1,000 in Traditional New Cash Bonuses.
With the new 2025 EV9 on sale, Kia is offering concession prices on 2024 models. We can help you take advantage of the savings. You can use our link to view deals on the 2024 and 2025 Kia EV9 models at a dealer near you.
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