Kia Is Increasing the Cost of Its Cars Without Actually Raising Prices | Carscoops

      The company is altering its car pricing strategy in the USA, which may result in higher costs for buyers than anticipated.

      6 hours ago

      by Brad Anderson

      Kia is set to reduce incentives, which will save the company up to $435 million in the next year.

      Models manufactured in the US will be given priority, while those made in Korea will be redirected to other markets.

      The goal is to increase Kia's market share in the U.S. from 5.1 percent to over 6 percent.

      Global automotive brands are modifying their strategies due to changing trade policies, with the United States experiencing significant impacts. Kia is among those adjusting its approach to mitigate the effects of tariffs imposed during the Trump era.

      The company plans to decrease imports from South Korea to the U.S. and focus more on domestically produced models.

      Read: Kia’s Family Hauler Dodges Tariff Tax, For Now

      Kia confirmed late last week that vehicles manufactured at its Georgia plant will mainly be sold to customers in the U.S., resulting in fewer exports to international markets. Conversely, vehicles made in Korea will be sent to other regions, including Canada.

      Incentive Cuts Instead of MSRP Increases

      In addition to altering its supply chains, Kia is refining its pricing approach, which may have effects for buyers. Although the company claims it does not intend to raise MSRP in the immediate future, it is pursuing a different strategy that could still lead to increased expenses for consumers.

      Instead of raising sticker prices directly, Kia plans to reduce customer incentives, as reported by Bloomberg. This will involve cuts to discounts and promotional financing, ultimately raising the amount customers need to pay out of pocket. By lowering discounts and financing options, Kia anticipates saving up to 600 billion won, approximately $435 million, over the upcoming year. For consumers, the outcome may feel similar to a price increase.

      According to Bloomberg, Kia is preparing for a challenging latter half of the year. Kia’s chief financial officer, Kim Seung-jun, mentioned intensifying competition in markets such as Europe and the expiration of federal EV tax credits in the U.S. as significant challenges. The first half of the year has already been tough, with the company recently reporting a 24 percent drop in operating profit for the quarter ending June 30.

      Growth Goals in a Challenging Market

      Despite a somewhat negative outlook regarding the business climate for the latter part of 2025, Kia is aiming to expand its U.S. market share by the end of the year. The company targets a 7-8 percent increase in local sales for the second half of the year and aims to raise its market share from 5.1 percent to over 6 percent. Models like the K4 and Carnival are expected to contribute significantly to this growth, according to Reuters.

      “We believe we can leverage the challenging environment as an opportunity to enhance our market share and sales, which is Kia’s strength,” stated Seung-jun.