What happens when a promising electric car becomes too expensive because of where it’s made? This exact problem now faces Kia’s upcoming EV4 sedan, according to InsideEV reports.
Kia is creating an affordable electric sedan called the EV4 to compete with cars like the Tesla Model 3. However, the company faces a major pricing challenge that could make this “affordable” car quite expensive for American buyers.
Why Location Matters for Car Prices
The biggest problem comes from where Kia will build the EV4. A Kia product planner confirmed the sedan will be manufactured only in South Korea for North American buyers. This means every EV4 must be shipped across the ocean as an import.
| Cost Factor | Impact on Price |
| Import tariff (tax on foreign goods) | Adds 25% to the car’s base cost |
| Lost federal tax credit | Buyers lose $7,500 money back from government |
Tax Credit Troubles
Here’s where things get more complicated for potential buyers. The federal government gives Americans $7,500 back when they buy qualifying electric vehicles. However, imported cars don’t qualify for this money.
- Current buyers sometimes use a “leasing loophole” where they lease imported EVs and still get tax benefits
- Future buyers will likely lose this option as the government plans to close this loophole this year
- Final result: EV4 buyers could pay significantly more than expected
Kia now faces a difficult choice: either raise prices to cover these extra costs or absorb the losses themselves. This decision will determine whether the EV4 remains truly affordable for American families.
