Several South Korean media agencies have reported that Kia intends to start manufacturing electric vehicles in the United States in 2024. Essentially, the Inflation Reduction Act contains a new US federal tax credit that Kia’s EVs are expected to be eligible for, according to InsideEVs.
In retrospect, Reuters mentioned SBS TV and Maeli Business Newspaper as sources rather than mentioning Kia validating the report.
Furthermore, it was anticipated that certain manufacturers might start producing electric vehicles in the US if the Inflation Reduction Act served its intended purpose. Notably, the newly signed law seems to be pushing more electric car manufacturers to locate in the United States already.
It must be noted that the new federal tax credit for electric vehicles has certain requirements. This includes where EVs are built and assembled, and their battery components are obtained.
In addition to the updated EV tax credit, US legislators also aim to encourage US manufacturing and material sourcing to reduce reliance on foreign suppliers. In 2024, the credit will be made accessible at the point of sale.
As a subsidiary of the Hyundai Motor Group, Kia is one of the few manufacturers competing with Tesla for second place in US EV sales. Although Tesla presently has a commanding lead, Hyundai and Kia are formidable competitors. They also essentially share the 2nd position with Ford.
Nonetheless, there are still other clear advantages, even though it appears that Kia’s main objective is to guarantee that its customers may benefit from the tax credit. With its popular electric vehicles, Kia has established a reputation as a company to watch. However, the lack of readily available plug-in Kia models remains a problem in the United States.
In order to meet the rising demand, Kia may be able to produce more electric vehicles if production is moved to the US.