Kia’s entry into the electric SUV market with the EV9 has garnered positive reviews from both the media and owners. However, the vehicle’s foreign manufacturing location has put it at a price disadvantage, as it is not eligible for federal tax credits. In an effort to address this issue, Kia announced that it has begun building the EV9 at its facility in Georgia, which opens up eligibility for a portion of the tax credit.
Currently, the competitive set for three-row electric SUVs is limited, with only the Tesla Model X and Rivian R1S in the same segment. While these models are more expensive than the Kia EV9, they qualify for at least half of the $7,500 tax credit. By shifting production to Georgia, the EV9 will be eligible for the $3,750 final assembly location part of the credit. However, the other half of the credit will only become available once Hyundai’s battery manufacturing facilities in Georgia are operational.
The Kia EV9 has a starting price of $54,900, which can increase to $59,200 with a long-range battery. The Wind AWD trim starts at $63,900, while the Land trim starts at $69,900. The range-topping GT-Line AWD has a starting price of $73,900, and with added options and accessories, it can approach $80,000. These prices may seem steep for a Kia, but the shift to U.S. production should help improve its competitive position.
One notable aspect of the EV9 is its range and styling, which have been well-received. However, the high price tag may deter some potential buyers. Nonetheless, the move to U.S. production allows the EV9 to become the first Kia and Hyundai electric vehicle to qualify for a partial tax credit. Additionally, buyers can still take advantage of leasing options to mitigate some of the cost.
Kia’s Georgia plant already manufactures popular models such as the Sorento, Sportage, and Telluride. It remains to be seen if the automaker will retool further to accommodate the production of the EV6 at this location. Furthermore, Kia’s cousin company, Hyundai, is also preparing for production in Georgia, potentially building models like the Ioniq 5, Ioniq 6, and other future electric vehicles. Both Kia and Hyundai have made significant investments in manufacturing capacity in the state, making it likely that a significant portion of their North American electric vehicle lineup will originate from Georgia in the coming years.