Volvo is now building its EX30 electric car in Ghent, Belgium, in a strategic move to assemble key models closer to the markets where they sell best.

The small SUV was previously assembled solely in Zhangjiakou, China, before being shipped across the globe. 

However, Volvo decided in October 2023 that adding production capacity for the model in the European Union would help it to better meet demand in that critical region. The EX30 was Europe’s 13th best-selling EV during the first three months of 2025, ahead of cars such as the Audi Q4 E-tron, Cupra Born and Mercedes-Benz EQA.

The decision to prepare the Ghent plant for the EX30 was validated when the European Union last year imposed punitive tariffs on Chinese-built EVs, including the Volvo crossover.

Volvo said at the time that it would consider reallocating output of its cars so that Belgian-built cars were primarily delivered within the EU, circumventing the tariffs.

Conversely, deliveries of Chinese-built cars would ramp up in non-EU markets where the tariffs were not a concern, such as the UK.

“We'll start [EX30] production at our Ghent facility in Belgium in the first half of next year and then ramp up through the gears,” said former Volvo CEO Jim Rowan last year.

“In the meantime, we can supply that car to many other regions which are not yet affected [by tariffs]: a lot of countries in south-east Asia, and the UK is an example of that.”

Francesca Gamboni, chief manufacturing and supply chain officer for Volvo, has now said the EX30 is “crucial” for the brand’s position in Europe, adding that its production flexibility “contributes to our resilience”. 

Adding EX30 production to the Ghent plant came at a cost of €200 million (£171m), requiring a new assembly line, 600 new or refurbished robots and a new battery pack production line, among other changes.

The factory also builds the electric EC40 and EX40, as well as the XC40 and V60 hybrids. 

Volvo had previously planned to launch the EX30 in the US after 2025. However, it has yet to confirm whether this is still the case, in light of US president Donald Trump’s implementation of a blanket 25% tariff on all foreign-built cars.