Kia is set to start producing electric vehicles (EVs) in the United States beginning in 2024, reports from South Korea claim.
It looks like the giant automaker is looking to get an EV tax credit under the Inflation Reduction Act in the US.
(Photo : Scott Olson/Getty Images)
CHICAGO, ILLINOIS - JULY 14: The Kia EV6 is introduced to the media at the Chicago Auto Show on July 14, 2021 in Chicago, Illinois. The show, which opens to the public tomorrow, is the first major auto show to be held in the United States since the start of the pandemic.
Kia Plans to Produce EVs in the US by 2024
As per the latest report by Reuters, Kia plans to produce its EV offerings in the US roughly two years away from now or sometime in 2024, South Korean news outlets, such as SBS and Maeil Business Newspaper, claim.
The two Korea-based outlets cite the latest information from clandestine sources who are close to the matter.
But do take this with a grain of salt as the South Korean carmaker has yet to confirm such news.
Is it Due to EV Tax Credits?
Reuters notes in the same report that two South Korean firms, Hyundai and Kia, failed to receive any federal tax credits. It comes after US President Joe Biden signed the new Inflation Reduction Act into law.
The new law excluded Kia and Hyundai as the two automakers have yet to produce their all-electric cars in the North American region.
(Photo : DIRK WAEM/AFP via Getty Images)
Illustration shows the logo of Kia at the #WeAreMobility fair at the 97th edition of the Brussels Motor Show, at Brussels Expo, on Friday 18 January 2019, in Brussels. BELGA PHOTO DIRK WAEM Illustration shows the logo of Kia at the #WeAreMobility fair at the 97th edition of the Brussels Motor Show, at Brussels Expo, on Friday 18 January 2019, in Brussels. BELGA PHOTO DIRK WAEM
And as such, according to a recent report by Electrek, the recent report claiming that Kia is looking to start its EV production in the region is not surprising at all.
The online news website notes that the new law seeks to expand manufacturing in the cleaner energy market in the US. In turn, it requires automakers to assemble their vehicles in the North American region to get their hands on the tax credits.
Read Also: Kia EV9: Automakers Tease the Electric Car Ahead of Showcase, Testing Now Underway
EV Tax Credits: Which Vehicles Qualify?
Some of the vehicles that already qualify for the credits include the Nissan Leaf, Ford F-150 Lightning, and the BMW X5.
Not to mention that offerings from all-electric tech firms, such as Tesla and Rivian have made it to the list, including the Tesla Model Y, Model 3, Model S, and Model X. The Rivian R1T pickup and the R1S SUV also qualified for the credits.
While Kia already offers an all-electric car, the Kia EV6, it has yet to gain any tax credits. But despite that, Electrek notes that Hyundai and Kia are impressively the best-selling non-American carmakers in the EV market in the US.
In fact, Reuters says in a separate report that the two Korean giants, Kia and Hyundai, hold the second best-selling spot in the US EV market. However, the latest law is less favorable for these two non-American automakers.
Related Article: Kia Partners With Deutsche Bahn to Reuse EV Batteries for Better Energy Storage Systems
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Written by Teejay Boris
