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Read moreVolvo Gears Up EX30 Production with New Belgian Plant Amid Soaring Demand
Just months after unveiling its fully electric EX30 model, Volvo Cars is already riding a wave of public and critical acclaim. The highly lauded electric SUV, which debuted earlier this year, has received multiple awards including The Sun Car of the Year and the Small SUV/Crossover of the Year award from the Sunday Times. Now, the Swedish automaker is taking strategic steps to keep up with the burgeoning demand for the EX30.
In a move aimed at ramping up production capacity and market availability, Volvo Cars has announced the opening of a new production facility for the EX30 in Ghent, Belgium, starting from 2025. This expansion supplements the initial production in Zhangjiakou, China that kicked off earlier this fall. The first fleet from the Chinese plant is expected to reach global customers by the end of this year.
A Strategic Global Vision: Scaling Production and Sales
Jim Rowan, Volvo Cars’ chief executive, stated, “Our ambition is to sell the EX30 around the world at an attractive price point, easing the transition to driving an electric Volvo car for more people while also contributing to company margins.” The addition of the Ghent plant is viewed as a pivotal move in achieving the company's ambition to localize production as close to key markets as possible. This not only boosts the production capacity tailored for European demand but also opens up channels for global export.
The Ghent plant will be joining Volvo’s existing portfolio of production facilities that build their best-selling XC60 and XC40 SUVs, among other models. The decision highlights Volvo’s ongoing strategic shift to increase production flexibility for what is anticipated to be one of its banner models in the near future.
The Bigger Picture: Volvo’s Electrification Strategy
While the EX30 is set to become a cornerstone of the automaker’s growth, the model also plays a crucial role in Volvo's larger electrification strategy. The company has ambitious plans to be entirely electric by 2030 and aims for electric vehicles to constitute half of its global sales by the mid-decade. By positioning the EX30 in the Ghent plant, Volvo is not only bolstering its electric car production capabilities in Europe but also underlining the significant role that the Ghent facility will play in the company’s electrification efforts.
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