Audi, Porsche, Kia say US EV buyers will lose tax credit under legislation

Audi plug-in hybrid electric will retain its existing federal credit through the rest of the year.
By : Reuters
| Updated on: 14 Aug 2022, 15:13 PM
Kia said in a letter to its U.S. dealers that the bill means all of its EV and plug-in vehicles will no longer qualify for tax credits once the bill is signed unless customers have written binding contracts.
Kia India has officially launched the EV6 electric car in the Indian car market in two variants - GT RWD and the AWD versions, 
The starting price of the Kia EV6 electric car is <span class='webrupee'>₹</span>59.95 lakh while the price of the top-spec model is <span class='webrupee'>₹</span>64.96 lakh (both prices are ex-showroom).
The first all-electric model to be based on Kia's Electric-Global Modular Platform (E-GMP), the EV comes in different body styles and cabin layouts. It has been brought to India in limited numbers via the CBU route with only 100 units available.
The Kia EV6 features a digital Tiger Nose grille, sequential turn indicators, LED head light and tail light units and stylish alloy design. The India-spec model comes with a higher ground clearance at over 170 mm than the model sold overseas.
The Kia EV6 has a crossover design language which means it focuses more on a stylish profile in relatively compact proportions rather than a mean SUV-ish design language and body type.
Kia India has already received an overall booking for 355 units of the EV6 electric vehicle. The deliveries of the first units of EV6 will start from September this year.
Cabin of the Kia EV6 gets floating centre console  that catches the eye almost instantly but the open storage section under it is a clever design ploy. The cabin has a plush and futuristic appeal with materials from sustainable sources.
The front two seats in Kia EV6 have a zero-gravity recline function while there is a panoramic sunroof, a plethora of charging options, ambient lighting, a power outlet under the rear seat to charge home devices.
Kia will set up 150 kW DC fast chargers at 15 of its dealerships which will help the EV6 to recharge from 10 percent to 80 percent in about 40 minutes.
Kia said in a letter to its U.S. dealers that the bill means all of its EV and plug-in vehicles will no longer qualify for tax credits once the bill is signed unless customers have written binding contracts.
View all Images
Kia India has officially launched the EV6 electric car in the Indian car market in two variants - GT RWD and the AWD versions, 
1/9
Kia India has officially launched the EV6 electric car in the Indian car market in two variants - GT RWD and the AWD versions, 
The starting price of the Kia EV6 electric car is <span class='webrupee'>₹</span>59.95 lakh while the price of the top-spec model is <span class='webrupee'>₹</span>64.96 lakh (both prices are ex-showroom).
2/9
The starting price of the Kia EV6 electric car is 59.95 lakh while the price of the top-spec model is 64.96 lakh (both prices are ex-showroom).
The first all-electric model to be based on Kia's Electric-Global Modular Platform (E-GMP), the EV comes in different body styles and cabin layouts. It has been brought to India in limited numbers via the CBU route with only 100 units available.
3/9
The first all-electric model to be based on Kia's Electric-Global Modular Platform (E-GMP), the EV comes in different body styles and cabin layouts. It has been brought to India in limited numbers via the CBU route with only 100 units available.
The Kia EV6 features a digital Tiger Nose grille, sequential turn indicators, LED head light and tail light units and stylish alloy design. The India-spec model comes with a higher ground clearance at over 170 mm than the model sold overseas.
4/9
The Kia EV6 features a digital Tiger Nose grille, sequential turn indicators, LED head light and tail light units and stylish alloy design. The India-spec model comes with a higher ground clearance at over 170 mm than the model sold overseas.
The Kia EV6 has a crossover design language which means it focuses more on a stylish profile in relatively compact proportions rather than a mean SUV-ish design language and body type.
5/9
The Kia EV6 has a crossover design language which means it focuses more on a stylish profile in relatively compact proportions rather than a mean SUV-ish design language and body type.
Kia India has already received an overall booking for 355 units of the EV6 electric vehicle. The deliveries of the first units of EV6 will start from September this year.
6/9
Kia India has already received an overall booking for 355 units of the EV6 electric vehicle. The deliveries of the first units of EV6 will start from September this year.
Cabin of the Kia EV6 gets floating centre console  that catches the eye almost instantly but the open storage section under it is a clever design ploy. The cabin has a plush and futuristic appeal with materials from sustainable sources.
7/9
Cabin of the Kia EV6 gets floating centre console  that catches the eye almost instantly but the open storage section under it is a clever design ploy. The cabin has a plush and futuristic appeal with materials from sustainable sources.
The front two seats in Kia EV6 have a zero-gravity recline function while there is a panoramic sunroof, a plethora of charging options, ambient lighting, a power outlet under the rear seat to charge home devices.
8/9
The front two seats in Kia EV6 have a zero-gravity recline function while there is a panoramic sunroof, a plethora of charging options, ambient lighting, a power outlet under the rear seat to charge home devices.
Kia will set up 150 kW DC fast chargers at 15 of its dealerships which will help the EV6 to recharge from 10 percent to 80 percent in about 40 minutes.
9/9
Kia will set up 150 kW DC fast chargers at 15 of its dealerships which will help the EV6 to recharge from 10 percent to 80 percent in about 40 minutes.

Audi of America, Kia Corp and Porsche said on Friday that buyers of its electric vehicles will lose access to federal tax credits of up to $7,500 once President Joe Biden signs a $430 billion climate, health and tax measure.

(Also Read: Hyundai Tucson: Variant-wise feature list)

The Volkswagen AG unit said only the Audi plug-in hybrid electric will retain its existing federal credit through the rest of the year. Audi said the legislation set to be approved by the U.S. House of Representatives on Friday "will have consequential impact on our business and to our consumers."

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The bill makes any electric vehicles assembled outside North America ineligible for tax credits, which has brought criticism from the European Union, South Korea and many automakers. The bill does allow credits for customers with binding contracts for vehicles not yet delivered when Biden signs the legislation.

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Kia said in a letter to its U.S. dealers that the bill means all of its EV and plug-in vehicles will no longer qualify for tax credits once the bill is signed unless customers have written binding contracts.

Kia urged dealers to reach out to customers on waiting lists to enter into contracts before Biden signs the bill. The letter, which the company confirmed on Friday, called the "sudden change" in EV tax policy "very disruptive to our business and unfortunately for our customers."

VW-owned Porsche said on Friday that buyers of its electric Taycan and plug-in hybrid Cayenne and Panamera vehicles will also immediately lose eligibility once the legislation is signed.

"With respect to customers who placed vehicles on order and are still awaiting delivery, their credit eligibility depends on individual sales agreement, which is a matter between them and their independently owned and operated Porsche dealership," a Porsche Cars North America spokesperson said.

The Alliance for Automotive Innovation, a trade group that represents VW, General Motors Co, Toyota Motor Corp and Ford Motor Co among others, said last week the law would make 70% of 72 U.S. electric, plug-in hybrid and fuel-cell EVs that currently qualify ineligible upon Biden's signing the law.

On Jan. 1, when the new bill's additional income and price caps and battery and critical mineral sourcing rules take effect, "none would qualify for the full credit when additional sourcing requirements go into effect," the group added.

First Published Date: 14 Aug 2022, 15:08 PM IST
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