Geely-owned Volvo Vehicles insists its determination to develop manufacturing of the all-electric Volvo EX30 in Belgium has been prompted by in style demand for the mannequin – however it may effectively show to be a nimble transfer by the Swedish automobile maker in a bid to bypass looming tariffs on Chinese language electrical automobile imports.

The European Fee is at the moment investigating whether or not to impose punitive tariffs to guard European Union automobile makers towards cheaper Chinese language electrical car imports whose worth it claims is stored artificially low by state subsidies. The Fee can have till subsequent October to evaluate whether or not to impose tariffs above the usual 10% EU fee for vehicles.

The EX30 which is predicted to be a small SUV bestseller was launched earlier this yr to basic acclaim clinching a number of main awards from the British motoring press. Manufacturing of the EX30 has already began in Zhangjiakou, China, with the primary vehicles scheduled to roll off the manufacturing line by year-end.

The producer stated the choice to additionally construct the EX30 at its Ghent manufacturing facility in Belgium boosts manufacturing capability in readiness for the anticipated EX30 demand in Europe in addition to for world export, and displays Volvo Vehicles’ ambition ‘to construct its vehicles the place it sells them as a lot as potential’, noting that the multi-site manufacturing strategy has already been adopted for its XC60 and XC40 SUVs that are made in each Europe and China.

“Our ambition is to promote the EX30 world wide at a gorgeous worth level, easing the transition to driving an electrical Volvo automobile for extra folks whereas additionally contributing to firm margins,” stated Jim Rowan, Volvo Vehicles’ chief government. “Including manufacturing in Ghent is a logical transfer as we goal to seize the sturdy demand for our thrilling small electrical SUV throughout the globe.”

Becoming a member of the XC40 and C40 fashions on the Ghent manufacturing line, the EX30 is the third absolutely electrical Volvo mannequin to be produced in Europe, strengthening each its electrical automobile manufacturing capabilities within the area and its formidable electrification technique to promote solely absolutely electrical vehicles by 2030. Already by mid-decade, it goals for half of its world gross sales quantity to encompass absolutely electrical vehicles.

Primarily based on a brand new platform from Volvo’s dad or mum firm Geely, which is shared with the brand new Sensible #1 and Polestar 4 – Volvo’s new electrical SUV, the EX30, will likely be very competitively priced from £33,795 when it goes on sale in Britian within the first quarter of subsequent yr.

One trade skilled stated: “Within the present difficult occasions of provide chain points and a possible conflict between the European Union and China over electrical automobile imports, flexibility is one thing that have to be thought-about. It is going to be fascinating to see whether or not Volvo will have the ability to keep the pricing with the European manufacturing – often thought-about costlier than the Chinese language crops.”