Volvo will produce an affordable SUV in Europe due to high demand

Volvo’s cheapest electric SUV began production in China a few weeks ago. However, according to the brand, this plant will not be enough to meet demand and will soon be produced in Europe. But are there more reasons?

One of the most anticipated vehicles of 2024 is the Volvo EX30. The electric SUV will be positioned as one of the most versatile and practical models in its segment and, in addition, one of the most affordable in its category. Normally, this quality is usually synonymous with a car manufactured in China, mainly because production costs are lower there. And this is not going to be an exception. However, the brand has surprised with the opening of a second plant for the EX30 located in Ghent, Belgium. The reason? According to the brand, “meet the high demand.” But is this all?

The Volvo EX30 was presented a few months ago to a multitude of praise from around the world. The main reason was its announced price, which will start in Spain at 36,480 euros for the most accessible version. The company also stated that its production would take place at the Zhangjiakou plant, in China, where work already began at the beginning of autumn to start the first deliveries at the end of 2023. However, a few hours ago they announced that it will also do the same at the Ghent factory.

Two factories for an electric car

The main reason for doubling the manufacturing of the EX30 will be to “meet the high demand” that Volvo’s most accessible electric model is having, and will have. For this reason, they have been forced to expand their production capacity, the most logical way to respond to the high demand expected in Europe.

“Our ambition is to sell the EX30 worldwide at an attractive price, making it easier for more people to transition to driving an electric Volvo vehicle and, at the same time, contributing to the company’s financial margins. “Adding production to Ghent is a logical move as we aim to capture the strong demand for our exciting small electric SUV around the world,” said Jim Rowan, CEO of the company.

Volvo EX30

However, Volvo may have another reason up its sleeve for wanting to manufacture its electric vehicle in Europe. As we know, the European Union is studying the possibility of imposing certain tariffs on manufacturers that produce cars in China to be exported to Europe. In this way, the Volvo EX30 manufactured in Ghent would be exempt from this payment and would be entirely destined for European customers. Those produced in China could be marketed both in the eastern country and in other destinations around the world.

Production in Ghent will not open immediately, but it will not be until 2025 when manufacturing of the EX30 begins at the European plant. Until then, the models that will arrive in Europe will do so by importing these electric cars from the China plant.

Let us remember that the Volvo EX30 has 100% electric mechanics, made up of a 200 kW (272 HP) electric motor installed on the rear axle and powered by a 51 kWh battery. This gives it a maximum range, according to WLTP approval, of 344 kilometers. Alternatively, a variant with 480 kilometers (Single Motor Extended Range) and another with sportier specifications (Twin Motor Performance) with 315 kW (428 HP) is also available.

The post Volvo will produce an affordable SUV in Europe due to high demand appeared first on Latest Car News.


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