Kia is slowing EV9 output in the US despite a hot sales start: Here’s why

Kia is hitting the brakes on production of its first three-row electric SUV in the US. Despite the EV9’s successful debut, new concerns about the EV tax credit are reportedly causing Kia to scale back — at least for now.

After another record-breaking US sales month in October, Kia said the impressive growth is driven by “strong demand” for its electrified lineup.

Kia sold over 69,900 vehicles last month, up 16% from the previous record in October 2023. Electric vehicles (EVs) led the growth, with sales surging 70% year over year (YOY). Plug-in hybrid (PHEV) and hybrid (HEV) sales were up 65% and 49%, respectively.

One of the biggest factors behind Kia’s growing sales numbers is the addition of its 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 even more than its first dedicated electric vehicle, the EV6, with around 17,700 models sold through the first ten months of 2024.

Despite the early success, Kia reportedly plans to slow output due to new concerns over the federal EV tax credit.

Kia slowing EV9 output in the US over EV tax credit rules

According to The Korea Herald, Hyundai Motor Group is slowing Kia EV9 output at its new $7.6 billion EV manufacturing plant in Georgia.

After kicking off production at its massive new Hyundai Motor Group Metaplant America (HMGMA) just last month, EV9 output is already being put on the back burner.

Industry sources said Hyundai produced just 21 EV9s in the third quarter. Only one of those was sold in the US. Meanwhile, Kia is still selling an average of 1,800 EV9 models each month.

Most EV9 models, even those for the US, are still built at Kia’s manufacturing plant in Korea. In addition, SK On manufactures its battery cells in China.

Because of this, the three-row electric SUV only qualifies for a partial $3,750 tax credit. “The EV9 is ineligible to benefit from the full IRA benefits due to the battery issue, along with other factors, including price,” A Kia official explained.

Although EV9 prices start at around $55,000, premium trims, like the GT-Line model, cost upwards of $80,000, which exceeds the IRA threshold for SUVs and pickups ($80,000).

Hyundai is fast-tracking production at its battery cell plant in GA with SK On to gain compliance. The plant is expected to have a 35 GWh annual capacity, enough for over 500,000 EVs. The Korean automaker is building another battery plant with LG Energy in GA with an expected 30 GWh annual capacity.

With President-elect Trump’s transition team reportedly planning to kill the EV tax credit, things could get more complicated next year.

“Reducing the EV subsidy could effectively end benefits for foreign automakers with US facilities,” Kim Pil-su, a car engineering professor at Daelim University, explained. If this is the case, Kia will likely need to boost incentives.

Kia’s EV9 is already among the most discounted EVs in the US. According to Motor Intelligence, EV9 average discounts reached over $18,000 this summer.

The company is currently offering $7,500 in Customer Cash, a $1,500 offer for Tesla owners and lesseees, and an up to $1,000 Season of New Traditions Retail Cash Bonus.

With the new 2025 EV9 hitting dealerships, Kia is offering clearance prices on 2024 models. We can help you take advantage of the savings. You can use our link to view deals on 2024 and 2025 Kia EV9 models at a dealer near you.