Kia Dealers Worried Inflation Reduction Act Will Kill EV9 Sales

Jan. 23, 2023 12:42 PM ET byJarryd Neves Electric Vehicles /8 Comments

Without that desirable incentive, buyers may shun the Korean EV in favor of something else.

US-based Kia dealers are having sleepless nights over the possible effects the Inflation Reduction Act may have on theKia EV9, the automaker'ssoon-to-be-launched electric range-topper.

James Morrell, chairman of the Kia Dealer Advisory Council, toldAutomotive Newsthat the newly-introduced legislation might pose problems for the EV9's pricing. "There's a lot of trepidation from headquarters and from the dealers on introducing a new, much more expensive EV that was priced and marketed based on the benefit of the $7,500," he explained.

This issue can be assuaged if the automaker were to build the EV9 in America, but currently, there's no word from the manufacturer about whether this will happen.

罗cal production of the EV9 isn't unimaginable. After all, the automaker already assembles models like the Sportage, Sorento, and Telluride SUVs. Kia's parent company Hyundairecently announced it would break groundon a $5.5 billion "metaplant" capable of manufacturing 300,000 electric vehicles per annum.

The Georgia-based facility is expected to swing into gear in 2025, two years after the EV9 is expected to enter production. Morrell notes this quick action from Hyundai led many dealers to believe Kia's Georgia plant would be similarly retooled for EV production.

"When cars are built in North America, it makes a tremendous impact for us, so we would love to see [the] production of hybrids and/or EVs in the United States," added Morrell.

Pricing for the EV9 is yet to be announced, but without the $7,500 incentive to lure customers, the large electric SUV is in danger of losing out to rivals. For Kia dealers, this could be disappointing. When the vehicle was privately revealed last year, Morrell notes that dealers were excited over the arrival of this all-electric seven-seater.

"It's an EV that people can get behind, he explained. "It's not some wacky, small, futuristic-looking vehicle that's only going to appeal to a small niche. It's a seven-passenger SUV that's electrified so there's going be a huge demand for it."

Appealing it may be, but will all those positive characteristics be enough to sway buyers without the seductive EV credit? It's difficult to tell, but there are also other hurdles the EV9 must clear.

Tesla recentlyslashed prices across the range, lending its already popular lineup even more appeal. Purchasing a Tesla Model Y with seven seats will now set buyers back $56,990, which is impressive value. Add the $7,500 tax credit into the equation, and you've got an electric bargain. With that in mind, rivals (including Kia) may struggle to compete.

There's been some困惑关于通货膨胀削减行动. SUVs priced up to $80,000 are privy to the discount. To qualify as an SUV, a vehicle must have three-row seating or boast a gross weight of more than 6,000 lbs. This is caused a problem for dealers and buyers alike, with many calling for greater clarity surrounding the rules.

Even though the Kia EV9 has three-row seating and likely weighs more than 6,000 lbs, it isn't American-made. Whether Kia has plans to eventually produce the vehicle locally remains to be seen.

Kia Dealers Worried Inflation Reduction Act Will Kill EV9 Sales

Join The Discussion

Gallery

Kia Dealers Worried Inflation Reduction Act Will Kill EV9 Sales

Join The Discussion

Gallery

Related Cars