Kia is urging its dealers not to impose markups on its highly anticipated EV9. In a letter addressed to its dealers, the automaker emphasized the importance of price transparency in delivering a positive purchase experience for the EV9 customers.
According to a report from Cars Direct, the automaker sent a letter sent to its dealers this week, saying “the EV9 customer is an important new owner to the Kia brand, and price transparency will be paramount as part of their purchase experience. We ask dealers to retail the EV9 without mark-up over the Manufacturer Suggested Retail Price.”
The request to refrain from adding markups over the MSRP may appear idealistic, especially considering how rampant the practice of dealers adjusting prices based on supply and demand is in North America. Over the last few years it has not been uncommon to see dealer markups of $20,000 or even $50,000 or more on some popular and in demand EVs.
Kia has also had their share of dealer markup situations. When the EV6 was introduced a year ago, reports of $19,000 markups over MSRP emerged.
Kia announced the official EV9 pricing in the US last month. The electric SUV will start from $54,900, all the way up to $73,900 for the most expensive trim level.
While Kia’s call for transparent pricing is a commendable step towards a fairer EV market, the reality is that it may be more challenging to enforce, as dealers are free to set their own pricing. In contrast, dedicated EV manufacturers like Tesla and Rivian have succeeded in skipping the dealership model and instead dealing directly with consumers and avoiding traditional markups.