Photo: Volvo
Last year, Volvo launched the EX30, one of the most promising electric vehicles on the market, thanks to its sensible pricing and great performance. Initially planned to start sales in the US this year, the EX30 is now delayed until 2025, when the electric crossover will begin production in Europe.
Last month, the Biden administration announced sweeping tariffs on Chinese goods, with a 100% tax on electric vehicles. Although there aren't many Chinese EVs imported from China, the number is not zero either. The most affected are Volvo and Polestar, both brands owned by Geely and producing many models in China. The US already had a 25% tariff for Chinese electric vehicles. However, at 100%, the new tax makes the upcoming EX30 electric crossover impossible to sell in the US.
The Volvo EX30 was one of the most promising electric vehicles, announced last year with impressive performance and an aggressive price, starting at a low $35,000. Many eagerly waited for Volvo to start deliveries, which were planned for later this year. However, in light of the new tariffs, Volvo decided not to supply the US market from its factory in Zhangjiakou, China. And it makes plenty of sense, even if this hurts US consumers, as I anticipated it would.
The 100% levy means EX30's new price would've started at $56,000 if Volvo went ahead with a Chinese import. This is too high for people to even consider the EX30 as an option. In comparison, the most expensive Tesla Model Y retails for $51.490, and that is before factoring in the $7,500 EV tax credit. This is why Volvo decided to wait another year before bringing the EX30 to the US, this time from Europe.
In 2025, the Swedish carmaker will start EX30 production at its factory in Ghent, Belgium, which will also supply the US market. This way, Volvo will be able to avoid the 100% tariffs, although the price will most certainly be higher for the Belgium-made model. Volvo is expected to announce a new delivery date closer to the start of production. Only US deliveries are now affected, with Canada still importing the EX30 from China. However, this would not last long, considering Canadians also consider higher tariffs on Chinese imports.
It would be interesting to see whether the Volvo EX30 will still be a compelling EV in 2025 at a higher price. By then, GM is expected to ramp production of the affordable Chevrolet Equinox EV, also starting at $35,000. Chevrolet Equinox EV will qualify for the $7,500 EV tax credit, which means that the posh Volvo EX30 might not be as compelling from the price/performance ratio standpoint. For instance, the Chevy Equinox EV will offer a range of 319 miles (513 km), whereas the Volvo EX30 peaks at 275 miles (443 km).
The Volvo EX30 was one of the most promising electric vehicles, announced last year with impressive performance and an aggressive price, starting at a low $35,000. Many eagerly waited for Volvo to start deliveries, which were planned for later this year. However, in light of the new tariffs, Volvo decided not to supply the US market from its factory in Zhangjiakou, China. And it makes plenty of sense, even if this hurts US consumers, as I anticipated it would.
The 100% levy means EX30's new price would've started at $56,000 if Volvo went ahead with a Chinese import. This is too high for people to even consider the EX30 as an option. In comparison, the most expensive Tesla Model Y retails for $51.490, and that is before factoring in the $7,500 EV tax credit. This is why Volvo decided to wait another year before bringing the EX30 to the US, this time from Europe.
In 2025, the Swedish carmaker will start EX30 production at its factory in Ghent, Belgium, which will also supply the US market. This way, Volvo will be able to avoid the 100% tariffs, although the price will most certainly be higher for the Belgium-made model. Volvo is expected to announce a new delivery date closer to the start of production. Only US deliveries are now affected, with Canada still importing the EX30 from China. However, this would not last long, considering Canadians also consider higher tariffs on Chinese imports.
It would be interesting to see whether the Volvo EX30 will still be a compelling EV in 2025 at a higher price. By then, GM is expected to ramp production of the affordable Chevrolet Equinox EV, also starting at $35,000. Chevrolet Equinox EV will qualify for the $7,500 EV tax credit, which means that the posh Volvo EX30 might not be as compelling from the price/performance ratio standpoint. For instance, the Chevy Equinox EV will offer a range of 319 miles (513 km), whereas the Volvo EX30 peaks at 275 miles (443 km).
My Volvo EX30 reservation has been delayed.
— Kyle Conner (@itskyleconner) June 26, 2024
Waiting for European production units…. They’re not shipping the China built ones. pic.twitter.com/hYeYKGSTfC
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