Saturday, July 13, 2024

Kia Corp to build electric vehicles in the US from 2024 to get EV tax credit

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Kia Corp is expected to produce electric vehicles in the United States from 2024 to qualify for a new electric vehicle tax credit under the Inflation Reduction Act, South Korean media Maeil Business Newspaper and TV channel SBS reported on Tuesday, citing an undisclosed auto industry source. named.

The Inflation Reduction Act signed by US President Joe Biden last month exempts Hyundai and Kia Corp. from the federal tax credit for not having electric vehicle assembly facilities in North America.

One of the highlights of the Act is the electric vehicle tax credit which makes it available for another 10 years and will be available at point of sale starting in 2024.

The legislation is not only about climate change, but to boost American manufacturing in the green energy space.

Electric vehicle manufacturers must undergo final assembly in North America to be eligible for credit.

The government has released a list of electric vehicles eligible for the tax credit. Since the law was signed, many manufacturers from outside the US have announced plans to build manufacturing facilities in the US.

Hyundai with the market-loving Ioniq 5 announced it is accelerating the construction of an EV manufacturing facility in the US to qualify for the tax credit.

Hyundai and Kia are in an affiliate with Genesis. The three Korean companies share the E-GMP EV platform that supports the Hyundai Ioniq 5 and Kia EV6.

Kia and Hyundai are leading non-American manufacturers in US EV sales, although changes to the EV tax credit have dealt a blow that may put them in a slump for a while until they can start EV production in North America.

2022 Kia EV6 pricing revealed, starts at $33,400

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