- Ahead of possible tariffs imposed on Chinese-made EVs imported into the European Union, Volvo has begun shifting production of some of its EVs made within China to Belgium.
- With a current EU tariff on China-imported EVs of 10%, this is reported to rise to between 25-35%, depending on the decision taken by the EU.
- The move would include models such as the EX90 and EX30 – the latter of which was set to begin production within the EU by 2025 before this report.
Volvo to shift more EV production to Europe?
The ongoing investigation by the European Commission into China-manufactured electric vehicles, which is investigating whether these vehicles are receiving subsidies that make it harder for European manufacturers to compete on price. A decision on the investigation is expected to conclude in the coming week, with Volvo company insiders reporting to The Times that the manufacturer will now begin switching production of its Europe-bound EVs, primarily the EX30 and EX90, from China to its facility in Ghent, Belgium. The United Kingdom may also begin taking delivery of these new Belgium-made EVs due to geographical closeness, despite any potential EU tariffs not applying to the country.
Volvo should have little trouble in manufacturing more EVs in Belgium. Its Ghent facility has already produced EVs such as the XC40 Recharge, while the company already had plans to expand production of the EX30 to Belgium by next year. Depending on the decision taken by the European Commission, it will also raise questions to other manufacturers selling EVs made in China, such as BYD, to Europe. Additionally, last year, 28% of Tesla vehicles sold in the EU were produced in China, according to Transport & Environment.
