KIA Accelerates U.S. Expansion as Telluride and Electric Vehicles Take Center Stage

Korean automaker storms American market with SUV dominance and electric offensive

The Telluride phenomenon continues driving KIA's aggressive stateside push while their EV lineup charges ahead—proving sometimes the best growth strategy involves actually building products people want to buy.

Electric models now account for the majority of KIA's expansion blueprint, with dealership networks stretching from coast to coast. The numbers don't lie—consumers are voting with their wallets despite what Wall Street analysts predicted.

While legacy automakers struggle with transition costs and production bottlenecks, KIA simply keeps selling vehicles that resonate with actual human beings. A novel concept in an industry obsessed with shareholder meetings and quarterly projections that rarely match reality.

One financial analyst's loss is another family's perfect road trip vehicle—the market eventually corrects for substance over speculation.

KIA expands U.S. footprint as Telluride and EVs dominate

KIA, which is actually South Korea’s second‑largest automaker behind Hyundai, entered the U.S. market in 1993 with the Sephia and Sportage. Both sold slowly, as Americans saw the brand as a budget option.

That changed when KIA introduced a 10‑year or 100,000‑mile powertrain warranty, a MOVE that shocked the industry and helped calm skeptical buyers. Steady gains followed, leading to the opening of its first U.S. assembly plant in West Point, Georgia in 2009.

Back then, the company leaned into humor with oddball ads like the 2010 “Black Sheep” rapping hamsters promoting the Kia Soul, carving out a niche audience. But 2017 marked a turning point when the high‑performance Stinger GT arrived.

The car earned strong reviews from “2 Dudes in a Car” hosts Rick Newman and Eric Watson, signaling a new level of seriousness for the automaker. The real game‑changer, though, was the Telluride, which Eric said was “a huge piece of redefining who we were as a brand.”

The Telluride’s three‑row layout, comfortable cabin, and sub‑$37,000 starting price helped it dominate middle‑ and upper‑middle‑class neighborhoods nationwide.

“You start to see Telluride as one of the two vehicles in their driveway,” Eric said. “If they bought a Telluride, perhaps the next car they replace also becomes a KIA.”

Around 2021, KIA overhauled its logo and revamped dealerships, with 60% of U.S. outlets rebuilt or expanded to handle rising demand. That same wave carried the EV9, a large electric SUV styled like a Range Rover, into strong early sales and another positive “2 Dudes” review.

KIA faces labor raids, theft lawsuits, and new production goals

While KIA’s U.S. push keeps accelerating, it hasn’t avoided controversy. On September 9, a federal raid at the Hyundai‑LG battery complex in Ellabell, Georgia led to 300 South Korean workers being detained for immigration violations, just two days after President Donald Trump warned foreign firms to obey American labor laws.

The raid delayed the plant’s opening and briefly threatened relations between the administration and Korean automakers.

KIA has built most of its U.S. facilities in non‑union states, keeping costs lower and sticker prices competitive. The TRUMP White House, known for backing domestic factory jobs but not unions, has tolerated the approach despite the headlines.

Another major headache was the “KIA Challenge,”  viral TikTok trend showing how to steal older KIA and Hyundai models that lacked electronic immobilizers. Thefts exploded until a software fix rolled out nationwide. Even so, the company paid a $200 million settlement after owners sued.

Eric says U.S. plants can now produce electric, hybrid, and gas models on the same lines to meet shifting demand. New models are coming, including an updated Telluride that, in his words, will take the brand to “new heights.”

Globally, KIA projects 3.22 million vehicle shipments this year, up 4.1%, with revenue expected to rise 4.7%. In the U.S., it plans to increase market share from 5.1% to over 6% and increase sales 7% year‑over‑year.

A new electric pickup is also coming to North America, expected to sell 90,000 units a year once production stabilizes.

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