Kia is waiting to ramp up EV9 production in the US despite a hot sales start: Here’s why

Although its first three-row electric SUV has been a hit in the US so far, Kia will wait until next year to scale up production. Kia is easing the EV9 into production at its West Point, Georgia, plant as it waits for it to qualify for the $7,500 federal EV tax credit.

After launching the three-row electric SUV in the US last December, Kia has already sold nearly 14,000 models this year.

With another 2,388 sold in August last month, EV9 sales reached 13,874 through the first eight months of 2024. The growth helped propel Kia to its best US sales month in company history, its second straight month topping the record.

Despite the hot start, Kia is waiting to scale up EV9 production in the US. Kia America COO and executive vice president Steven Center told Automotive News the decision comes over complex qualifications to qualify for the $7,500 tax credit, particularly the battery assembly requirements.

Kia’s first EV9 rolled off the production line at its GA plant in May. However, it will wait until the spring to ramp up output.

Kia is easing the EV9 into production in the US

The EV9 was expected to be the first Hyundai Motor Group vehicle to qualify for the full $7,500 EV tax credit.

Hyundai Motor will open the doors at its massive new $7.6 billion Metaplant America next month, where it will build new Hyundai, Genesis, and Kia EVs. The updated 2025 IONIQ 5 will be the first to roll off the assembly line later this year.

The battery portion is not expected to come online until next year, so vehicles built at the facility will only receive a $3,750 credit.

Hyundai Motors’ joint venture with SK On is expected to begin operations in the second half of 2025. The partnership will secure a US battery supply for Hyundai, Genesis, and Kia EVs in the US. Kia America’s COO did not reveal where the EV9’s batteries will be built.

Center did say the incentives (both federal and state) are a “big leveling field in terms of the price of cars.”

If the $7,500 tax credit were eliminated, as former President Donald Trump has said he plans to do if elected, it would “impact a lot of middle-class and below buyers,” Center explained.

According to Motor Intelligence, Kia’s EV9 was among the most discounted vehicles in the US in June. The EV9 had an average discount of $18,081.

Despite a hot sales start, it looks like Kia will wait until next year to scale up EV9 production for US buyers. Until then, the company will continue to lean into leasing as an option.

However, even that loophole is “very fragile,” as it could still be revoked, Center explained.