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).
| 2025 Kia EV9 Trim | Starting Price* |
| Light Standard Range | $54,900 |
| Light Long Range | $59,900 |
| Wind | $63,900 |
| Land | $69,900 |
| GT-Line | $73,900 |
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.
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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