Despite a promising start, Kia’s new flagship EV9 sales have stalled out with a premium price tag and quality issues that have slowed the electric SUV’s momentum.
Strong start
According to the Korean Economic Daily, Kia, an affiliate of the Hyundai Motor Group, sold just 408 EV9 units in Korea last month.
The news comes as something of a surprise following the EV9’s strong start in Korea. After debuting in its home market on June 19, the electric SUV earned over 13,000 pre-orders in just eight days on the market. A Kia official said over 50% of the orders were from new customers.
Less than a month after launching, Kia sold 1,334 EV9 units in June and another 1,251 in July. The electric SUV gained popularity for its long-range capabilities (311 miles on a charge), versatility, and tech-focused features.
Built on Hyundai’s E-GMP platform, the EV9 offers “true SUV capabilities,” including a spacious interior, AWD, and 5,000 lbs of towing capacity.
Kia EV9 sales slip in August
Despite the strong start and potential leads, Kia has failed to keep the momentum going. Sales slipped over 300% from July, suggesting the electric SUV has fallen out of favor in its home market.
As KED notes, the most expensive EV9 model fully loaded costs around 100 million won ($74,840) in South Korea.
After subsidies, the price is around 70 million won ($52,425). That’s nearly double the cost of its mid-size Palisade SUV and Carnival minivan.
Kia isn’t known for its premium vehicles, which could be one reason the flagship SUV is struggling to gain market traction.
The EV9’s massive 99.8 kWh battery makes it challenging to cut prices, according to the automaker. Battery costs can amount to nearly half of the vehicle’s production expenses.
On top of this, Kia’s electric SUV experienced several quality issues during its rollout, including lamp control signals, charging controls, and other systems, according to the Ministry of Land, Infrastructure and Transport.
Kia fixed the issues at no cost to owners, but there are likely additional factors as to why EV9 sales fell by so much last month.
EV leaders like Tesla are moving in the opposite direction with drastic price cuts. Tesla introduced the Model Y with an LFP battery pack in Korea in the mid-40 million won (roughly $35K to $40K) price range after subsidies.
German luxury automakers, including BMW, Audi, and Mercedes-Benz, have made similar moves. Electric models in the region, like the EQS SUV, are up to 26 million won ($19,500) off with discounts.
Meanwhile, the South Korean automaker hopes bringing the EV9 overseas will boost sales momentum. The EV9 is expected to launch in the US in the fourth quarter with two powertrain options – 76.1 kWh and 99.8 kWh.
Kia’s flagship electric SUV will be the automaker’s first EV assembled in the US at its West Point, Georgia, facility, starting next year. The move will enable the vehicle to qualify for the $7,500 EV tax credit from the Inflation Reduction Act.
Kia has yet to release prices, but expectations are for it to start around $60,000 for the standard pack and upwards of $70,000 for the more powerful trim.
Electrek’s Take
Top comment by FC
The EV9 is going to be a success here in the US as it has R1S rivaling space for a much lower price. I suspect pricing will start in the mid-50s and top out around $70,000 fully loaded. Once domestic production starts it will hopefully be eligible for tax credits which will further increase its popularity.
Kia’s flagship EV9 is slated to play a key role as the automaker transitions to an electric, digital future.
A bump in the road at this point should not be a concern. Many new vehicles (not just electrics) experience minimal quality issues. Kia will likely learn from the missteps in its home market as it launches in key markets like the US.
However, the battery costs could continue to haunt them overseas. With production at its West Point plant not slated to begin until next year, Kia will ship models until then, driving costs up further.
Once production begins in the US, it should help level out costs. Meanwhile, Hyundai and SK On are building a $5 billion EV battery cell factory in Bartow County, Georgia. Annual production capacity is expected to reach 35 GWh to support Kia, Hyundai, and Genesis EVs. Local production should help Kia gain control of costs.
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