Kia Motors Corp. (OTC:KIMTF) has cut its 2030 electric vehicle (EV) sales target by more than 20%, becoming the latest carmaker to lower expectations amid faltering global demand and growing trade uncertainty.
The South Korean carmaker now expects to sell 1.26 million battery-electric vehicles by the end of the decade, down from the 1.6 million target announced last year. It is also aiming for 993,000 hybrid vehicle sales by 2030.
In a presentation to investors on Wednesday, Kia cited increasing policy uncertainty in the United States, one of its key export markets.
That includes concern over sweeping new trade tariffs introduced by Donald Trump, which have made cross-border commerce more expensive and unpredictable.
The measures are expected to raise costs for foreign manufacturers, especially those with production facilities in Asia and Europe, and could prompt further downward revisions across the industry.
Kia’s announcement follows similar moves by other major automakers.
Ford Motor Company (NYSE:F) recently delayed production increases of its electric F-150 Lightning, citing weaker-than-expected demand and rising input costs.
General Motors Company (NYSE:GM) has scaled back its EV plans for 2024 and 2025, blaming persistent supply chain challenges and uncertain consumer appetite in the US.
VVolkswagen Group (XETRA:VOW) has also reduced its EV output forecasts, particularly for premium models in Europe, where demand has softened.
These adjustments come against a backdrop of slowing global growth for EVs. Analysts expect sales of fully electric and plug-in hybrid vehicles to exceed 20 million units in 2025 (a year-on-year increase of 17 to 18%) but that is below earlier projections, reflecting a more cautious outlook across the sector.
As tariffs begin to bite and key markets become more politically volatile, automakers are facing difficult choices about how quickly and aggressively to scale their transition to electric.
Kia’s revised targets reflect not only a softer demand environment but also a recognition that regulatory and trade headwinds are likely to intensify before they ease.