South Korean automaker Kia is planning to produce its upcoming affordable electric vehicle model, the EV3, in Mexico to access the federal tax credits in the United States.
Kia to produce EV3 in Mexico
Kia is considering producing its new EV3 electric subcompact crossover SUV at its Monterey Factory in Mexico, CarBuzz reported, citing local media.
The move will enable the South Korean automaker to ensure a very affordable price for the upcoming Kia EV3 through the $7,500 federal tax credits under the Inflation Reduction Act in the US.
Kia officially opened the order books for the EV3 earlier this month, revealing its base price of about $30,700 (KRW 42.08 million). Therefore, the Kia EV3’s starting price could further drop to about $23,200 with the IRA incentive.
About the Kia EV3
The Kia EV3 will become the brand’s third battery-electric offering and the first of a new series of affordable EVs when it hits the market.
While it shares numerous designs and technologies with its larger sibling, Kia EV9, it still “carves out its own identity” to distinguish itself in the highly competitive electric vehicle market. It features the brand’s new “Tiger Face” grill, modernizing the iconic Tiger Nose design.
Kia expects the EV3 to become popular among SUV lovers owing to its advanced electric powertrain, innovative technologies, and bold design.
“It will reassure those who may have been hesitant to make the switch to electric mobility and will lead the mass adoption of EVs.”
Kia President and CEO Ho Sung Song
It rides on parent company Hyundai’s E-GMP platform, like the award-winning Hyundai IONIQ 5 and Kia EV9. It also features Kia’s fourth-gen battery technology, enabling a WLTP-rated range of up to 373 miles (600 km). It also supports fast charging capability from 10% to 80% in just 31 minutes.
Inside, it offers the brand’s next-gen Connected Car Navigation Cockpit (ccNc). It has 12.3″ screens and Apple CarPlay/ Android Auto integration.
Competitors
Considering that the Kia EV3 will likely have a price range of about $30,000 to $35,000 (excluding the federal tax credit), it will be among the cheapest electric vehicle models in the US market.
Presented below are Kia EV3’s potential major competitors when it comes to pricing:
| Place | Most affordable EVs in Q1 2024 | Average selling price with discounts | % off average transaction price |
| 1 | Nissan LEAF | $27,956 | 19% |
| 2 | Nissan Ariya | $35,556 | 31% |
| 3 | Hyundai IONIQ 6 | $36,506 | 22% |
| 4 | Tesla Model 3 | $40,547 | 7% |
| 5 | Toyota bZ4X | $40,646 | 15% |
Kia’s existing Monterey factory in Mexico currently has a production rate of up to 400,000 units. Kia reportedly plans to produce 110,000 EV3s per year at the Mexican facility for the North American market. Meanwhile, it will sell South Korean-made units in its home market and Europe.
