Kia EV9 Production Slowed Down Despite High Demand

The 3-row flagship electric SUV from the Korean auto giant has been doing great on the sales charts ever since its launch

The production of the Kia EV9 electric SUV has been intentionally slowed down in the U.S. This is quite strange since the EV has been doing exceedingly well on the sales charts in recent times. In fact, Kia was able to post record sales numbers in October for its electrified lineup. In total, Kia was able to sell an impressive 69,900 units last month. A huge surge in the growth of EVs resulted in a 70% increase in year-on-year numbers.

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Kia EV9 Production Slowed Down

To understand EV9’s contribution, you should know that the Korean auto giant has sold close to 18,000 EV9 SUVs in the first 10 months in the U.S. Funnily enough, it is even higher than 17,700 units of the EV6 sold in the same period. Clearly, the fact that the EV9 is the flagship model doesn’t seem to bother new customers. With all this positive commotion, Kia is still slowing down production.

The reason is rather bizarre and a bit technical. Most Kia EV9 electric SUVs sold in the U.S. are manufactured in Korea. However, its battery cells are made by SK On in China. As a consequence, the large electric SUV is only eligible for a partial $3,750 tax credit. We know that the U.S. doesn’t allow full incentives if an EV or its components are made outside the country, especially China.

Hyundai Motor Group has already commenced production at the new Hyundai Motor Group Metaplant America (HMGMA) in Georgia last month. However, only 21 EV9s have been manufactured here in the third quarter. To dodge the tariffs and avail of incentives totally, Hyundai is readying its battery cell plant in Georgia with SK On with an expected annual capacity of 35 GWh. This should be enough for 500,000 EVs. Furthermore, another battery plant with LG Energy will also be operational in Georgia with an annual capacity of 30 GWh.

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Learn Electric Cars Says

The Kia EV9 has been among the most discounted EVs in the U.S. for a while now. As per Motor Intelligence, the average benefits on the 3-row EV in the summer were around $18,000. Going forward, there are concerns regarding the discontinuation of incentives on electric cars by President-elect Donald Trump. That would be a huge step in the U.S.’s electric mobility journey. Many carmakers will have to face the brunt of that policy. Let us keep an eye out for how things pan out in the coming months in this regard.