Produced in Europe, will the Volvo EX30 soon become cheaper?

Volvo marks a major strategic turning point with the start of production of the EX30 in Ghent, Belgium.

This strategic decision by Volvo allows the electric SUV to legally circumvent the customs duties imposed on vehicles imported from China and to apply for eligibility for the Eco-friendly Bonus. Until now, the EX30 was exclusively produced in China, a consequence of Volvo being acquired by the Chinese manufacturer Geely.

With strong demand for the EX30 since its launch at the end of 2023, this relocation of European production addresses the need to reduce costs and maximize competitiveness. Local production also helps decrease the carbon footprint associated with importing, aligning with the environmental ambitions of the European Union.

This initiative is accompanied by a massive investment of 200 million euros in the Belgian factory. Nearly 600 new robots have been installed, a new battery assembly line has been set up, and approximately 350 jobs have been created, bringing the total workforce to nearly 6,600 people. These improvements ensure efficient and flexible production capable of meeting the demands of a growing European market.

A second life for the EX30

The Ghent plant also manufactures other electrified models, such as the EX40, EC40, and hybrids like the XC40. In 2024, over 186,000 vehicles have rolled off its lines, demonstrating the industrial capacity of this historic site open since 1965.

Moving the production of the EX30 to Europe is part of a broader strategy to optimize costs, strengthen local presence, and accelerate the energy transition. However, this shift raises questions about the fate of the “Chinese” models still in stock. Their clearance will be closely monitored in the coming months, with likely good deals available, as Volvo seeks to balance its portfolio while ensuring optimal competitiveness in the European market.

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