Geely-owned Volvo Cars insists its decision to expand production of the all-electric Volvo EX30 in Belgium has been prompted by popular demand for the model – but it could well prove to be a nimble move by the Swedish car maker in a bid to circumvent looming tariffs on Chinese electric car imports.

The European Commission is currently investigating whether to impose punitive tariffs to protect European Union car makers against cheaper Chinese electric vehicle imports whose price it claims is kept artificially low by state subsidies. The Commission will have until next October to assess whether to impose tariffs above the standard 10% EU rate for cars.

The EX30 which is expected to be a small SUV bestseller was launched earlier this year to general acclaim clinching several major awards from the British motoring press. Production of the EX30 has already started in Zhangjiakou, China, with the first cars scheduled to roll off the production line by year-end.

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