Volvo Cars is making a strategic move by shifting production of its EX30 models from China to Belgium. This decision comes as a response to protectionist anti-Chinese tariffs, allowing the brand to avoid the hefty taxes imposed on vehicles imported from China. The Ghent facility in Belgium has now taken over production of the award-winning EX30 models intended for the US market.
Initially, production of the EX30 started at the Ghent factory in April, catering to the Swedish domestic and European export markets. However, the primary motivation behind this shift was not solely to avoid tariffs. According to reports from Electrive, Volvo was content with importing the small electric crossover from China despite the increased tariffs. The main issue was the extended wait times for vehicles to be shipped from China, which led to delays of up to eight months for Swedish and German buyers in 2024.
With production now in Ghent, Volvo aims to reduce wait times to about 90 days once operations are fully optimized. The lengthy wait times and price hikes due to tariffs have impacted sales of the EX30, causing it to drop out of the top 10 European EV sales in the first half of 2025. Volvo Cars CEO, Hakan Samuelsson, expressed confidence that returning production to Europe will help regain market share and sales figures for the EX30.
For American consumers, the shift in production is good news as the EX30 will no longer be exclusively made in China. This move allows Volvo to keep the vehicle competitive in the US market, as vehicles imported from Europe incur lower tariffs compared to those from China. As Volvo realigns its US product lineup to meet market trends and navigate political landscapes, both the Ghent and South Carolina facilities will play a significant role in the company’s product mix for the foreseeable future.
In conclusion, Volvo’s decision to relocate EX30 production from China to Belgium reflects a strategic adjustment to avoid tariffs and improve delivery times for customers. By transitioning production to Europe, Volvo aims to enhance sales performance and market competitiveness for the EX30 model in the US and European markets.
