KIA postpones the launch of the EV4 electric saloon in the United States indefinitely

KIA has decided to postpone indefinitely the launch in the United States of its EV4 electric saloon -not to be confused with the four-door version sold in Europe-. The South Korean manufacturer had aimed to carve out a place in this segment of the North American market, currently dominated by the Tesla Model 3, but current conditions make this unfeasible.

The EV4 was presented at the New York Auto Show last April, which makes KIA’s original intentions for this model in this market quite clear.

The change of course in the South Korean manufacturer’s commercial strategy responds, in principle, to a hostile trading environment for all vehicles that are not produced locally. It should be recalled that the EV4 destined for the North American market was due to roll off the assembly line at the South Korean KIA Gwangmyeong EVO plant, located in Autoland Gwangmyeong near Seoul, which opened in September 2024 and is dedicated exclusively to electric vehicle production.

Tariffs and the end of purchase incentives

If the original plan went ahead, every EV4 unit would be subject to a 15 percent tariff, as it is a vehicle imported from South Korea. This is a less favourable situation than the one prevailing until now thanks to the KORUS agreement, which allowed South Korean cars to enter the United States free of duties.

On top of the increased cost that this 15 percent tariff would entail, there is also the elimination of purchase incentives for electric vehicles in the United States since 30 September, which will probably reduce demand for this type of vehicle over the coming quarters as this incentive disappears.

In short, before announcing the launch of the EV4 in the United States, KIA’s management ran the numbers and now the sums no longer add up, which has led to its postponement indefinitely until further notice.

What has happened with the KIA EV4 is not, however, an isolated case. Volkswagen, for example, has also given up on selling its flagship, the ID.7 saloon, in this same market for the same reasons. Meanwhile, Nissan has decided to remove the Ariya SUV from its US catalogue, just three years after it began sales, due to the tariffs that vehicles imported from Japan must face. Nor should we forget that the KIA EV3, which enjoys considerable success in other markets such as Europe, seems set to have a rather harder time in the United States.