After record-setting EV sales last fall, legacy automaker Kia is making new waves in 2025: Two of its most popular EV models now qualify for federal tax credits that can save American consumers thousands of dollars.
The company's strategic maneuvering couldn't come at a better time, with a new U.S. presidential administration creating an uncertain future for incentives under the Inflation Reduction Act.
What's happening?
Kia has begun manufacturing its EV6 and EV9 models at a facility in Georgia and using qualifying components, making both eligible for the IRA's full $7,500 tax credit for new EVs in 2025.
The U.S. government determines eligibility for these rebates based on manufacturers' suggested retail prices, battery components and mineral sourcing, and assembly location, along with individual-modified adjusted gross income.
Kia's EV6 and EV9 models were significant factors in the automaker's record-setting fall, during which Kia sold more than 70,000 vehicles in November for the first time ever. The EV division grew by 45% year-over-year, and demand for the all-electric EV6 soared by as much as 46%, setting another sales record.
Why is this news encouraging?
The addition of Kia's EV6 and EV9 to the IRA eligibility list for the very first time is another example of how EVs are only getting more affordable and accessible, allowing Americans to save money on fuel and maintenance.
Getting more gas-powered vehicles off the roads will also benefit car-dependent cities suffering from smog and air pollution — a public health threat connected to millions of premature deaths annually around the globe. According to the Environmental Protection Agency, a typical passenger car releases more than 10,000 pounds of carbon pollution each year.
What is Kia's overall sustainability plan?
Even though the bulk of its sales still come from its gas-powered and hybrid vehicle lineup, Kia has shown significant growth in its EV sector.
The automaker aims to have 15 EV models in circulation by 2027 and sell 1.6 million EVs internationally by 2030. It also intends to expand its charging infrastructure.
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Good driving range 🔋 Beyond its EV lineup, Kia's sustainability initiatives include a seven-year partnership with The Ocean Cleanup to tackle plastic pollution, along with other solutions to minimize carbon pollution.
For example, Kia reported its aim to operate its business sites entirely on renewable energy by 2040. Last year, it introduced 6 megawatts of solar generation to plants across South Korea and India.
Bottom line: Kia's moves in the American market demonstrate a dedication to sustainability and innovation — and thanks to the new qualification under the Inflation Reduction Act, now might be the best time to snag an EV6 and EV9.
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