Skip to main content

This is being done in anticipation of an increase in import duties on cars manufactured in the Middle Kingdom, and because the Old World accounts for the bulk of sales of the Swedish brand. In China, meanwhile, Volvo is not doing so well, and losing its largest European market now would be completely inappropriate. It is already known that the plant in Ghent, Belgium will begin producing EX30 and EX90 crossovers.

Frightened by rising tariffs on electric cars imported to Europe from China, Volvo decided to move the production of two crossovers to Ghent, Belgium. We are talking about the subcompact EX30 and the flagship EX90, which are currently being produced at factories in Zhangjiakou and Chengdu. According to some reports, Volvo had to take this step due to low sales in China and reluctance to lose the large European market. After all, it is in the Old World that Volvos are still in good demand, and in the electric car segment the Swedes generally occupy third place.

Polestar made special versions of Volvo for Germany Video: Volvo crash tested the smallest and largest electric car Volvo released the last car with a diesel engine, but you can’t buy it

Duties on Chinese electric cars are planned to be raised from the current 10 to 15-30 percent, although analysts are confident that even this will not be enough to achieve price parity between cars produced in the European Union and the Middle Kingdom. The purpose of all this, however, is quite obvious. By raising tariffs, European authorities want to put an end to “unfair trade practices,” which refers to the Chinese government subsidizing supply chains to reduce the final price. The United States also acts in a similar way, but their approach is even tougher.

American producers will be protected by increasing tariffs by 75 percentage points at once – from 25 to 100 percent. In addition, already this year tariffs on imported lithium-ion batteries for electric cars will increase from 7.5 to 25 percent, and for graphite and some critical raw materials duties will be raised from 0 to 25 percent. Well, since China controls more than 80 percent of certain segments of the supply chain for batteries for electric vehicles, at the same time the United States will create its own industrial base.

Instead of L200 and Hilux: Chinese pickups

Leave a Reply