new federal tax credit

For the new federal tax credit, Kia intends to produce electric vehicles in the US.

According to South Korean media outlets Maeil Business and SBS, Kia intends to produce its electric automobiles in the United States (via The EV Officials). The carmaker presently constructs the Kia EV6, a top-selling electric vehicle in North America, at its Hwasung facility in South Korea. But now, the article claims that Kia will move some of its EV assembly to the US by 2024.

Kia would be able to take advantage of new incentives included in the newly approved Inflation Reduction Act, which forces automakers to produce EVs in North America, if they manufacture them in the US.

Kia and Hyundai combined hold the second-highest EV market share after Tesla

In response to what they consider to be a “discriminatory” policy, Kia and Hyundai, its parent firm, have threatened legal action against the US. Other sections will bar automakers from incentives if they use minerals and battery parts purchased from China, effectively cutting off practically every local EV producer once the law takes effect.

Currently, Hyundai and Kia possess the second-highest market share for electric vehicles in the US, a position that may be threatened if consumers are unable to benefit from the new federal incentives (and man, are EVs getting expensive).

Although it won’t be operational until 2025, Hyundai is already investing domestically by constructing an electric vehicle and battery plant in Savannah, Georgia.

It might be in Hyundai’s best interest to expedite that procedure, begin producing the Ioniq 5, and possibly even assist Kia in bringing the EV6 manufacture domestically. A common E-GMP EV platform serves as the foundation for both cars. Furthermore, it is hoped that Kia and Hyundai will have their next-generation vehicles, such as the Hyundai Ioniq 6 and the Kia EV9 SUV, ready to go by the time they finish setting up everything.

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