June 25, 2024
Industry News

Production of the Kia EV9 has commenced in Georgia.

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The Kia EV9 is in the market and has garnered positive feedback from both the media and owners. However, its production location overseas has put it at a price disadvantage as it is not eligible for federal tax credits. Kia has stated that it plans to manufacture the EV9 in its Georgia facility. Recently, the automaker announced that production of the three-row EV has commenced.

Competition in the three-row electric SUV segment is currently limited, with the Tesla Model X and Rivian R1S being the main contenders. While both competitors have higher starting prices than the Kia EV9, they qualify for at least half of the $7,500 tax credit. Moving production of the EV9 to Georgia makes it eligible for the $3,750 final assembly location credit, with the remaining portion becoming available once Hyundai’s Georgia battery manufacturing facilities are operational.

The base price for the EV9 is $54,900, which increases to $59,200 with a long-range battery. The Wind AWD trim starts at $63,900, while the Land variant begins at $69,900. Opting for the range-topping GT-Line AWD raises the starting price to $73,900, with additional options and accessories potentially pushing the price close to $80,000.

Although the EV9 offers impressive range and design, the high price tags may deter some buyers. Shifting production to the U.S. should improve its appeal. It will be the first Kia and Hyundai EV to qualify for a partial tax credit, although potential buyers could explore leasing options. Kia’s Georgia plant also manufactures the Sorento, Sportage, and Telluride models, raising questions about the possibility of relocating the EV6 production to the same facility.

Hyundai, Kia’s sister company, is also preparing for production in Georgia, potentially manufacturing the Ioniq 5, Ioniq 6, and other upcoming EV models. Both automakers have made significant investments in manufacturing capacity in the state, hinting at a future where a large portion of their North American EV lineup will be produced there.

 

## FAQ

1. **Is the Kia EV9 eligible for federal tax credits?**
– The Kia EV9 is currently not eligible for federal tax credits, but moving production to Georgia will make it eligible for a partial credit.

2. **What is the starting price of the Kia EV9?**
– The base price of the Kia EV9 is $54,900, with higher trim levels and options increasing the price.

## Conclusion

The Kia EV9’s move to U.S. production in Georgia marks a significant step for the brand in the EV market. With competitive pricing and improved eligibility for tax credits, the EV9 aims to make a mark in the three-row electric SUV segment. Kia and Hyundai’s continued investments in Georgia highlight their commitment to expanding their EV lineup in North America.

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