The KIA EV4 will not be produced in the United States, and all units sold in that market will be imported

The South Korean manufacturer is going to launch its new mid-size electric saloon, the EV4, in the US market, just as planned. However, it has already ruled out the possibility of moving its production to a plant located in this market in order to avoid the import tariffs introduced by the country’s new government.

According to KIA’s head of product planning, the EV4 intended for the US market will be built exclusively in South Korea. Meanwhile, the hatchback version, aimed mainly at the European market, will be produced at the Slovak plant in Žilina. This latter variant will not be sold in North America, so the application of import tariffs on imports from Europe, should a new trade agreement not be reached, will not be a problem.

Importing the EV4 from South Korea will involve facing a 25 per cent tariff if there are no changes in the trade relationship between the two countries, which could complicate the competitiveness of this model in the US market, especially considering that one of its main attractions is its value for money.

In addition, as an imported vehicle, the EV4 will not be eligible for the 7,500-dollar tax credit currently offered by the US federal government. Although this does not seem to be a problem either, as this incentive is about to disappear. It remains to be seen whether KIA will fully pass the additional cost of the import tariff on to consumers, or whether it will instead limit its profit per unit sold in order to market this model at a competitive price.

A matter of priorities

Although Hyundai Motor Group, KIA’s parent company, has several production plants in the United States that manufacture electric vehicles based on the E-GMP platform, the South Korean manufacturer has decided not to produce this model on US soil. It is not known, however, what led KIA to take this decision. In this regard, some sources suggest that the company has probably opted to reserve its production capacity in the United States for other models with higher demand and much higher profitability, such as mid-size and large SUVs.

KIA presented the final production version of the EV4 last February and showed it shortly afterwards during the KIA EV Day. This vehicle uses the 400-volt architecture variant of the E-GMP platform, with the aim of reducing production costs. It will be available in two versions, with a standard battery pack of 58.3 kWh capacity and an extended-range version with 81.4 kWh. Under the WLTP homologation cycle, the latter version will be able to cover up to 630 km on a single charge, while the version with the standard battery pack will offer a range of 430 km. Both versions will feature a single 150 kW electric motor on the front axle.

In South Korea, the EV4 has been on sale since mid-March, with an initial price at the current exchange rate of around 26,500 euros. The launch of this mid-size electric saloon in the European market is still pending, with no confirmed date yet.