Sunita Somvanshi
Kia’s upcoming EV4 electric sedan, planned for early 2025 release, hits a major snag as the company confirms U.S. models will be built in South Korea, subjecting them to hefty import tariffs that could erase its price advantage against Tesla’s Model 3.
Hard Numbers Show Tough Economics
Kia aims to price the base EV4 under $40,000, with the GT-Line around $52,000. Tesla’s Model 3 Performance currently starts at $54,990. But with President Trump’s 25% tariff on imported vehicles, the EV4’s math no longer works.
“Automakers won’t be able to eat the full 25% tax, as the average profit margin for them on a vehicle is between 10 and 20 percent,” reports industry analyst Ian Wright.
The possible elimination of the $7,500 federal EV tax credit compounds the problem. Kia hasn’t announced final pricing, likely due to this uncertainty.
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Engineering Specs: What Buyers Get
The EV4 comes with two battery options: a 58.3kWh standard pack or 81.4kWh long-range version delivering up to 330 miles per charge. All models feature a front-wheel-drive setup with a 201 hp motor.
The 400V platform allows 10-80% charging in about 30 minutes. Trunk space measures 490 liters with a 2,820mm wheelbase for passenger room.
Tech features include a 30-inch screen, wireless Apple CarPlay/Android Auto, and V2L capability for powering external devices. NACS compatibility gives access to Tesla’s charging network.
Production Economics Drive Decisions
A Kia product planner told journalists: “For now, we are planning to introduce only the sedan for North America.”
This production choice reflects Kia’s broader strategy. The company reserves Korean plants for EV development while keeping U.S. manufacturing for higher-margin SUVs like the EV9.
Recent financials show Kia already facing profit pressures. Sales incentives in the U.S. have jumped to $2,000 per vehicle, up from $1,100 last year. The company noted a temporary decline in sales of high-margin EV SUVs like the EV9 as they transition to local production in Georgia.
Market Reality Check
EV adoption varies drastically by region: China leads with 50% market share, Europe follows at 21%, while the U.S. lags at 10%.
Consumer research shows three persistent EV barriers: range concerns (buyers now want minimum 310 miles), purchase price, and charging infrastructure. The EV4’s range meets expectations, but tariffs threaten its price competitiveness.
Competitors include the next-gen Chevrolet Bolt, Hyundai Ioniq 6, and the aging Nissan Leaf. Chinese brands like BYD could eventually enter with aggressive pricing if trade tensions ease.
Tariff Gamble
Kia may be betting on tariff changes. A federal court recently ruled President Trump exceeded authority by using emergency powers for tariffs, triggering legal battles.
“At this point, there’s nothing automakers can realistically do other than shuffle how and where they build cars around and wait to see how things fall,” one industry analyst noted.
Despite these hurdles, Kia maintains its target of 1.26 million annual EV sales by 2030. Whether the EV4 helps reach that goal in the U.S. market depends largely on trade policy shifts in the next 18 months.
