Kia deprioritises EV4 launch in the US
While the Kia EV4 is destined to be a classic compact car for the European market, the fastback version was intended to be an international success – especially in the US, where it could have stolen the show from the Tesla Model 3, the perennial bestseller in its segment.
The South Korean carmaker had originally announced a US market launch for the electric hatchback saloon. The model even celebrated its North American debut at the New York Auto Show in April. But since then, market conditions in the United States have changed fundamentally.
Firstly, there are President Trump’s punitive tariffs – since the EV4 fastback is manufactured in South Korea, unlike the European hatchback, imported vehicles are subject to tariffs of 15 per cent. Donald Trump originally wanted to impose a 25 per cent tariff on South Korean EV imports, but the two countries agreed on a reduction at the end of July as part of a trade agreement.
Nevertheless, the vehicle would become significantly more expensive for US customers than had been expected before the change of government. Under the Biden administration, the KORUS Free Trade Agreement, which came into force in 2012, still applied. This provided for duty-free access for Korean passenger cars to the US market.
The end of subsidies is hampering demand
US tax credits for electric cars expired on 30 September. It is still too early for concrete figures, but the cancellation of this government subsidy is likely to result in a significant cooling of the market for fully electric vehicles. Before the end of the programme, there was another rush for pure electric cars, which is why many interested parties are likely to be served for the first time.
In light of these developments, the US market launch of the EV4 is no longer a priority for Kia. It is quite possible that the electric sedan will never find its way to American customers. A spokesperson for the company confirmed this decision to InsideEVs: “However, as market conditions for EVs have changed, the release of the upcoming EV4 electric sedan will be delayed until further notice.”
The Tesla Model 3 competitor is by no means the only electric car that, contrary to original plans, will either not be launched in the United States at all or will be launched much later than expected. Volkswagen’s electric mid-range ID.7, for example, suffered a similar fate. The Nissan Ariya, which was already underperforming in the US, was dealt a fatal blow by Trump’s punitive tariffs on car imports from Japan. After only three years, the model is to be discontinued there.
Under different political conditions, the Kia EV4 Fastback would have had a good chance on the US market – the attractively priced sedan is positioned in one of the most popular segments, stands out visually from the crowd, offers a modern infotainment system and plenty of space, and is among the leaders in its segment in terms of range, with up to 633 kilometres according to WLTP.
It also offers a high level of comfort, as the hatchback version proved in our test drive report. These attributes also apply to its technical sibling, the EV3, which is very popular in South Korea and Europe. The compact SUV was also originally intended to be offered in the US, but Kia seems to have changed its mind about its US market launch.
This article was first published by Elias Holdenried for electrive’s German edition.
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