Kia has reported a significant increase in sales through January, with the company enjoying a strong start to the year. However, two of its electric models have seen a sharp decline in popularity, with the EV9 and EV6 experiencing a 45 percent drop in sales compared to last month.
This decline is attributed to the removal of the $7,500 federal EV tax credit, which has been pivotal in supporting demand for these vehicles. Despite this, Kia's overall sales figures remain strong, with the company shifting a total of 64,502 vehicles in the United States in January, a 13 percent increase year-over-year.
Several of Kia's most popular models have seen an uptick in sales, including the K4/Forte, K5, Niro, and Seltos. However, other models such as the Soul, Sorento, and Carnival have experienced a decline in sales.
The Sportage has emerged as the volume leader for the month, delivering 13,984 units, up 23 percent from the year before. Kia's vice president of sales operations, Eric Watson, attributes the strong start to the year to the brand's momentum built over the past three years and highlights the new additions to the lineup, including the all-new flagship Telluride SUV with a hybrid variant and the highly anticipated K4 hatchback.
The decline in EV sales is a clear indication that the removal of the federal tax credit has had a significant impact on consumer demand for electric vehicles. As the automotive industry continues to shift towards more sustainable options, it will be interesting to see how Kia adapts and responds to this trend.
