Kia’s January Success Soured by EV Setback

January 2026 was a month of contrasts for Kia in the U.S. On one hand, the company recorded a strong growth: overall sales totaled 64,502 vehicles, a 13% increase compared to last year. On the other hand, the electric vehicle segment experienced a severe downturn.

The Kia EV6 and EV9 faced a steep decline. Sales of the Kia EV6 plummeted by 65%, with only 540 units sold compared to 1,542 a year earlier. Even last year’s extensive model update couldn’t retain buyers. The sales of Kia EV9 fell by 45% (674 units). A likely cause is the loss of the $7,500 federal tax credit, which was previously a crucial incentive for purchasing expensive electric vehicles.

While electric vehicles lost ground, Kia’s traditional crossovers and minivans broke records. The brand’s locomotive was the Sportage, selling nearly 14,000 units (+23%). Sales of Kia Niro rose by 163% (to 3,170 vehicles). Sales of the Seltos crossover increased by 85%, and the Carnival minivan by 60%. The K4/Forte and K5 sedans, as well as the flagship crossover Telluride, showed consistently high results.

Despite the setback in the electric vehicle segment, Kia America’s management remains optimistic. Eric Watson, Vice President of Sales, emphasized that the brand’s success lies in diversity. The company is betting on a ‘balanced portfolio’, which includes electric vehicles, gasoline cars, and hybrids. The upcoming plans include the launch of a hybrid version of the updated 2027 Telluride and a new K4 hatchback.

Analysts believe Kia’s strategy of maintaining a diverse range of powertrains provides a safety net amidst fluctuating market demands and regulatory changes. Additionally, the anticipated hybrid Telluride is expected to cater to both eco-conscious consumers and those preferring traditional performance, aligning with recent trends toward sustainable yet versatile vehicle options.