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.
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.
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.
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.