Kia’s U.S. Sales Surge: A New Chapter for EV Production
Kia America recently reported record-breaking first-quarter sales, a milestone the company attributes in part to a bold manufacturing shift. With production of the EV9 and EV6 now ramped up at its plant in Georgia, Kia is leaning heavily into its electric vehicle strategy. According to Eric Watson, VP of Sales for Kia America, the future looks bright, thanks to this domestic push and the growing eligibility of their EVs for federal tax credits.
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The $7,500 Tax Credit: A Major Factor Behind the Shift
When Kia decided in 2023 to move EV9 production from South Korea to the U.S., the motivation was clear: maximize the benefits of the Inflation Reduction Act (IRA). The act provides a $7,500 tax credit for qualifying EV purchases — a significant incentive for buyers.
Initially, however, the EV9 only qualified for half of that credit ($3,750) because its batteries were still being sourced from South Korea and China. That changed in 2024. Kia now sources EV9 batteries from its Georgia facility, making the vehicle fully eligible for the complete $7,500 credit.
EV6 Joins the Party: First-Time U.S. Production in 2025
Starting in 2025, the EV6 joins the EV9 in being produced on American soil. Most trims of the EV6 will also be eligible for the full federal tax credit — a win for both Kia and environmentally conscious buyers looking to save money.
The Catch: GT Trims Get Left Behind
Why GT Models Are Excluded from Tax Credits
There’s a hitch in Kia’s otherwise smooth EV expansion: the high-performance GT trims of both the EV6 and EV9. These versions remain in production in South Korea, and as a result, they do not qualify for the federal EV tax credit under current IRA rules.
The GT trims are designed for those who prioritize power and performance, offering more horsepower and sportier styling. Unfortunately, because of their foreign production, these premium models miss out on both the $3,750 and the $7,500 credits.
Leasing May Be a Workaround
For buyers still interested in the GT versions, leasing could offer a workaround. The IRA’s restrictions don’t apply to leased EVs in the same way, meaning lessees may still benefit from the full tax credit, even if the vehicle is built abroad.
Another Wild Card: Import Tariffs Could Hit GT Trims Hard
Trump’s Pause on Tariffs Offers Temporary Relief
There’s an additional layer of uncertainty facing the GT trims — tariffs. A 25% tariff on imported vehicles, announced in early April, was recently paused for 90 days by President Donald Trump. But if the tariffs are reinstated later, the GT trims, being made in South Korea, could be hit hard.
Combined with their ineligibility for the tax credit, this could significantly raise the cost of owning a GT model, making them less attractive to U.S. buyers.
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What’s Next for Kia’s Electric Future?
As Kia doubles down on U.S.-based EV production, its strategy is clearly aimed at aligning with evolving government policies and buyer incentives. The EV9 and EV6 are now better positioned to thrive in the competitive EV market — especially as affordability becomes a key concern for buyers.
However, the brand’s performance-oriented GT trims will face an uphill battle unless production shifts stateside or policies change. For now, Kia’s high-performance fans may need to balance their need for speed with a higher price tag.