Volvo will also produce its EX30 compact SUV in Europe

The Swedish manufacturer recently began production of the EX30 at its Chinese plant in Zhangjiakou, from where it planned to export it globally. However, the high level of existing demand for this compact electric SUV has forced the company to take an alternative route. This is at least the explanation that Volvo has given in announcing that the EX30 will also ultimately be produced at the Belgian plant in Ghent starting in 2025.

Volvo plans to make the first deliveries of the EX30 in the Chinese market at the end of this year. It will later reach other markets such as Europe, which will initially receive units produced in China until the first units of this compact electric SUV start rolling off the assembly line at the Ghent plant.

Producing the EX30 in Europe as well will allow Volvo to better meet demand mainly in the Old Continent, but also in other markets to which it will be exported. Currently, the Ghent plant in Belgium focuses its activity on producing the XC40 and C40. The company assures that, as far as possible, its intention for the future remains to produce its vehicles in the same markets where they are sold. A good example of this is that both the XC60 and the XC40 are produced in both China and Europe.

The right strategy

Expanding the production of its electric models and not concentrating it exclusively in China will allow Volvo to enjoy greater flexibility, in order to better adapt to the conditions of each market at any given moment. It should also not be forgotten that it cannot be ruled out that, in the short or medium term, European authorities may decide to raise import tariffs on vehicles coming from China, which would be a severe blow to the competitiveness of Volvo’s models in Europe.

What remains to be seen, however, is how the fact that its production will take place in Europe, where production costs are clearly higher than in China, will affect the final price of the EX30. Time will tell.

“Our intention is to market the EX30 globally at an attractive price, so as to make the transition to electric mobility possible for a greater number of people. Starting production of this compact SUV in Ghent is a logical step for the company, which will allow us to respond to the strong demand for this model that we are detecting.”