Kia Postpones US Launch of EV4 Sedan, Pivots to Electric SUV for American Market
(Feature image: 2026 Kia EV4, Source: Kia)
In a strategic shift, Kia has indefinitely delayed the US debut of its first electric sedan, the EV4. The automaker confirmed the move follows policy changes under the Trump administration—including the loss of the $7,500 federal EV tax credit and new 15% tariffs on South Korean imports (down from 25% after recent negotiations).
Key Reasons Behind the Delay
Kia America’s marketing chief, Russell Wager, explained to Car and Driver that tariff uncertainties make the EV4’s business case unpredictable: “Can you tell me when tariffs will be resolved in Mexico, Canada, and Seoul? If you give me that answer, I’ll be as specific as possible.”
The EV4—originally engineered when tariffs stood at 0%—faces pricing challenges in a market where Kia’s EV sales plummeted post-tax-credit expiration. October 2024 saw EV6 sales drop 71% and EV9 sales fall 66% year-over-year.
New Plan: Compact EV3 SUV Takes Priority
Kia EV3 compact SUV
Kia now prioritizes launching the EV3, its Europe-top-selling electric compact SUV, in the US. The model resonates with growing demand for smaller, affordable EVs and could outperform the sedan-focused EV4 in America’s SUV-dominated market.
While timing and pricing remain unclear, Wager noted market stability won’t be measurable until early 2026 due to “pull-forward” effects from the expired tax credit.
Uncertain Future for Electric Pickup
Kia’s recently announced electric pickup faces even steeper hurdles. Wager cited Ford’s halted F-150 Lightning production as indicative of market challenges, hinting the truck may never reach US buyers.
Current Incentives Boost Kia and Hyundai EVs
To revive demand, Kia offers:
- $10,000 customer cash on all EV models
- 0% APR financing for 72 months + $2,500 bonus cash
Hyundai (Kia’s sister brand) provides IONIQ 5 leases from $189/month, with both automakers emphasizing affordability amid policy shifts.
