It's been a few months since Kia revealed its EV5, boasting an impressively low price tag. Unfortunately for many, this affordable electric vehicle probably won't be available for purchase in the United States.
According to Car and Driver, "the EV5 will be sold in China, South Korea, Canada, and Mexico… [but the] SUV won't make it to the U.S. market due to the manufacturing-related intricacies of the Inflation Reduction Act of 2022, which altered how EVs sold in the U.S. are incentivized."
Tesla maintains its lead in the electric car market, but competitors are collectively gaining ground, based on estimates from Kelley Blue Book. Previously, there was some anticipation that Kia's dramatic price drop in China — and the prospect of the EV5 being sold in the U.S. — could trigger a broader price war, dropping the average price of EVs, which would have been a more widespread win for consumers.
While EV prices are indeed decreasing, making the eco-friendly car option more accessible for the average consumer, the anticipated $22,000 EV5's absence from the U.S. market is still a setback. For comparison, Tesla's Model Y starts at an equivalent of about $36,000 in China.
Still, the demand for electric vehicles is certainly on the rise.
The IEA's Global EV Outlook reported that "in the first quarter of 2023, electric car sales increased 60% compared to the same period in 2022."
While some forecasts expect an impending drop in sales on the horizon, EVs are still on track for overall growth in 2024, which Cox Automotive described as the "Year of More," predicting "more models, more incentives, more discounting, more advertising, and more sales."
More options, more availability, and lower prices is truly a triple threat.
If you're considering making the switch to an electric vehicle, whether to help the environment, save money on gas, or keep up with the latest trends, there's no time like the present to invest.
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