Volvo Cars has begun production of its compact electric SUV, the EX30, at its Ghent plant in Belgium. This move aims to strengthen Volvo’s position in the European EV market. The Ghent facility will expand its production line by year-end, adding the EX30 Cross Country, an off-road variant.
Volvo invested approximately 200 million EUR (about 214 million USD) at its Ghent plant over recent years to ramp up EX30 production. The investment introduced a new EV platform, added 600 new or refurbished robots, and expanded facilities, including a battery pack assembly line, door production line, and a larger battery hall. The production boost has created about 350 new jobs, increasing the workforce to around 6,600 employees.
A Volvo spokesperson stated that the EX30 is a key strategic move to strengthen their foothold in Europe’s premium electric vehicle market. They added that it aligns with Volvo’s long-standing strategy of producing vehicles where they sell best. The company also emphasized that flexible distribution across global production sites enhances manufacturing resilience and allows quick adaptation to market demands.
The Ghent plant currently produces the EX30, all-electric EX40 and EC40, as well as plug-in hybrid models XC40 and V60. In 2024, the facility produced over 186,000 vehicles. Operating since 1965, it is Belgium’s only complete vehicle production site and has become Volvo’s electric vehicle hub in Europe.
Volvo expands its European production capacity with a new facility in Slovakia, complementing its existing plant in Torslanda, Sweden. This move forms part of the company’s broader strategy to increase electric vehicle production for the European market.
Volvo’s decision to produce the EX30 locally in Belgium responds strategically to growing concerns about Chinese-made vehicles in the European EV market. The European Union recently launched investigations into subsidies and price dumping of Chinese electric vehicles, with potential tariff increases on the horizon. By localizing production, Volvo aims to mitigate policy risks while improving logistics efficiency and customer response times.
The EX30 represents Volvo’s most accessible premium EV, serving as a springboard for brand expansion. Following a strategy similar to its U.S. launch, where the EX30 was priced below 35,000 USD, Volvo targets younger European consumers with this competitively priced urban electric SUV.
Volvo’s substantial investment in the Ghent plant signals a shift in its global production strategy. The current model of exporting Chinese-made EX30s to the U.S. market carries tariff and supply chain risks. By establishing a successful production model in Europe, Volvo lays the groundwork for similar localized production sites in North America.
Volvo adopts a hybrid approach, combining regional production bases with shared global platforms, going beyond simple electrification. This strategy enables the brand to maintain consumer trust and operational flexibility in an increasingly uncertain regulatory environment.
