Kia Delays EV4 Launch, Confirms EV3 Crossover for U.S. After EV Sales Collapse 50%+

Kia Delays EV4 and Confirms EV3 Launch as U.S. EV Market Goes Cold

Kia Delays EV4 launch in the U.S., putting a “temporary hold” on bringing its next battery-electric vehicle to American showrooms due to the sharp downturn in the EV market. The decision reflects the collapse in demand following the expiration of federal tax credits and low appetite for sedans. However, Kia is “carrying on” with its plans to launch the smaller and less expensive EV3 electric crossover, which is scheduled to reach American showrooms later in 2026. This split strategy shows Kia is rapidly shifting resources to focus on higher-demand crossover segments amid the industry-wide market slowdown.

EV Market Plunge Forces Kia to Hit Pause

October sales charts confirmed severe declines across the industry, forcing immediate strategic adjustments by automakers.

• Artificially Inflated Sales: The U.S. EV market set a record in September (10% market share), artificially inflated by buyers rushing to claim federal tax credits before the September 30 expiration.
• Sales Collapse: The “pull-ahead affect” resulted in massive October sales declines:
  • Kia EV6 sales fell to 666 (down from 1,941 YoY).
  • Kia EV9 sales fell to 508 (down from 1,732 YoY).
  • Subaru Solterra managed just 13 units (down from 1,078 YoY).
  • Hyundai Ioniq 5 sales dropped 63%.
  • Honda Prologue sales plunged 81%.

Kia Delays EV4, Prioritizes EV3 Crossover

Kia’s decision reflects the current low demand for sedans in the U.S., whether electric or combustion-powered.

• EV4 Launch Postponed: Kia has placed a “temporary hold” on the launch of the EV4 in the U.S., citing “changing market conditions for EVs”. A source close to Kia suggested that the model is unlikely to ever be offered to American buyers due to the overall lack of demand for sedans.
• EV3 Launch Confirmed: In contrast, Kia is “carrying on” with the U.S. launch of the smaller and less expensive EV3, which is set to reach showrooms later in 2026. As a small crossover, the EV3 aligns better with prevailing American buyer preferences.

Industry-Wide Shake-Up and Lowered Forecasts

Kia’s strategic shift mirrors retrenchments across the industry as automakers adjust to reduced federal support and slowing growth.

• Forecast Reduction: Analysts are paring back earlier EV forecasts. AutoPacific, Inc. predicts market share will reach around 12% by the end of the decade, barely half of its pre-policy change forecast.
• Other Cancellations:
  • Volkswagen scrubbed the U.S. launch of the ID.7 sedan.
  • Stellantis pulled the plug on the all-electric version of the Ram 1500 pickup.
  • General Motors announced production cuts at several EV plants, impacting thousands of jobs.
• Future Outlook: EV sales are expected to remain severely distressed for the rest of this year due to the “pull-ahead factor.” However, demand is expected to regain some momentum in 2026 as the market stabilizes.

Final Thoughts

Kia’s decision to delay EV4 but proceed with the EV3 is a pragmatic response to the immediate market shock. It signals that automakers must now be highly strategic about model segment and launch timing, prioritizing high-demand crossovers (like the EV3) over sedans (like the EV4). The next phase of the EV transition will favor models that offer clear value and utility, a lesson learned from the recent collapse in sales.

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