Volvo Could Import EX30 From Belgium To The U.S.

The Swedish auto giant currently manufactures the EX30 in Zhangjiakou, China but the EU and the U.S. are planning tariffs on China-made EVs.

Volvo is planning to import the EX30 EV from Belgium to the U.S. to bypass the stringent tariffs on China-made EVs. The announcements of tariffs by the EU and the U.S. have shaken up the automobile industry in the last few months. Carmakers and industry experts have varied opinions about these steps. The underlying reason for these tariffs is the fear of mega-affordable Chinese EVs flooding the international markets and killing the competition.

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Volvo Could Import EX30 From Belgium To The U.S.

However, Volvo has criticized these tariffs by the EU since it is owned by China’s Zhejiang Geely. China is a major manufacturing hub for Volvo. But Volvo has a presence in most international markets around the world since it is a legacy carmaker. Hence, it needs to cater to all sorts of markets. In fact, it has a prominent presence in China, Europe and the U.S. Therefore, if the tariffs come into effect, it will need to shift its manufacturing to Belgium.

In this manner, it will be able to offer the compact electric SUV to its European and American customers without the worry of exorbitant tariffs. Talking about that, the European Commission revealed plans to impose additional tariffs on China-made EVs by up to 38.1% last week. Geely was on the list with a 20% additional tariff. Similarly, the U.S. government surged the tariffs on China-made EVs by a whopping 100% last month. Clearly, that will make it nigh impossible for Chinese carmakers to sell their inexpensive EVs in these markets.

In this relation, Volvo’s Deputy CEO, Bjorn Annwall said in an interview with the Automotive News Europe Congress in Frankurt that the company supports open and fair trade. “Anything that gets in the way of that is not a good thing.” He goes on to mention that the increased prices will have to come out of the pockets of the customers eventually. Note that Volvo plans to produce the EX30 in Ghent, Belgium in 2025.

As a matter of fact, by the end of this year (2024), the Swedish car marque aims to sell the mighty popular EX30 in over 90 countries already. Currently, in the U.S., the compact electric SUV commences at a rather enticing $34,950 with a range of around 275 miles (442 km) on a single charge. It is available in two versions – a single-motor Extended Range and a dual-motor Performance. Annwall said premium brands, like Volvo, will have an easier time growing EV sales because they can achieve price parity with their corresponding ICE models sooner. He concludes by saying that Volvo plans to reach that “well before 2030”.

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Learn Electric Cars Says

The situation with Chinese EVs is getting serious with each passing day. The Chinese automakers keep creating cheaper and cheaper EVs and trying to sell them in domestic and international markets. In fact, they have a noticeable presence in Europe already. This is specifically true for countries like Norway. The top Chinese companies with a significant presence in Europe include BYD, Geely and SAIC. It will be interesting to see the consequences of the proposed EV tariffs on China-made EVs in the EU and the U.S.