[Click eStock] "Kia EV9 Expected to Benefit from US IRA"

On the 16th, Samsung Securities forecasted that Kia is expected to benefit from the U.S. Inflation Reduction Act (IRA) starting in 2024. Accordingly, they maintained a 'Buy' investment rating and a target price of 110,000 KRW.

Eunyoung Lim of Samsung Securities stated, "Kia's new electric vehicle 'EV9' has an average selling price (ASP) of $60,000, which is twice the U.S. ASP of $35,000."

Researcher Lim explained, "The EV9 is a model that will determine Kia's brand position in the electric vehicle era and evaluate Hyundai Motor Group's software technology level. It will be launched first in Korea, with a U.S. release scheduled for the third quarter."

The EV9 will initially be exported from Korea and is planned to be produced in the U.S. starting in 2024. By manufacturing at the U.S. plant, it is expected to benefit from a $3,500 tax credit, which is about 5.8% of the selling price. According to IRA regulations, SUVs priced under $80,000 are eligible for the tax credit.

Researcher Lim estimates the operating profit of the EV9 vehicle at 520 billion KRW. He emphasized, "Global sales of 100,000 units are expected mainly in the North American market in 2024. The estimated profit increase of 520 billion KRW from the EV9 corresponds to about 7% of last year's consolidated profit."

There is great anticipation for the EV9 as a competitively priced mid-to-large SUV. Researcher Lim diagnosed, "The price is between '$50,000 and $70,000,' which is twice Kia's average selling price in the U.S. (around $35,000), but it has price competitiveness compared to Tesla Model X ($109,000), Rivian R1S ($78,000), GM's Hummer ($110,000), and Silverado ($105,000)."

This content was produced with the assistance of AI translation services.