Volvo has reportedly shifted EV production to Belgium ahead of schedule. Production of the new Volvo EX30 and EX90 is moving to Belgium to avoid expected tariffs on electric vehicles made in China.
Although Volvo wasn’t expected to begin building its new EVs in the EU until 2025, it looks like the move could be happening ahead of schedule.
According to a new report from The Times, Volvo has already started moving production amid expected incoming tariffs on EVs imported from China.
The company announced it planned to build its new low-cost EX30 at its Ghent plant in Belgium last October. However, the shift was expected “from 2025,” as Volvo’s press release stated.
In addition to the EX30 and EX90, Volvo may move assembly of some models going to the UK, The Times report stated, citing anonymous sources. The report also claims Volvo is one of the most exposed automakers to tariffs on China-made EV tariffs.
With EV imports from Chinese automakers like BYD and MG surging, the EU claims unfair government subsidies promote growth.
The EU launched an investigation into Chinese EV subsidies as “global markets are now flooded with cheaper electric cars,” European Commission President Ursula von der Leyen said in October.
With trade tensions heating up, the EU is expected to reveal if new tariffs on EV imports from China will be imposed as early as this week. The new tariffs would go into effect July 4, bumping them above the current 10%.
Meanwhile, Volvo denied the report, saying, “It’s premature to speculate on the implications of what this investigation will conclude or any potential measures.”
A Volvo spokesperson clarified: “The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as much as possible.”
The company was already planning to move EX30 production to its Belgium plant as demand for the low-cost compact electric SUV climbed. Despite its small size, the EX30 is already a “profitable growth driver” for Volvo.
After launching production in China late last year, the company sold 14,500 EX30s in the first quarter of 2024. That’s more than the EC40 (6,000), nearly topping the EX40 (17,400).
The momentum has continued, with the EX30 quickly becoming “one of the best-selling fully electric cars in Europe” through May, according to Björn Annwall, chief commercial officer and deputy CEO at Volvo Cars.
Volvo EX90 production kicks off in South Carolina
Volvo has sold 72,325 electric cars through the first five months of the year, up 45% from the 49,725 handed over at this time last year. Of them, nearly 57,400 were sold in Europe, up 68% year-over-year.
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