Volvo, a Swedish carmaker owned by China’s Zhejiang Geely Holding Group, has plans to shift its EV production to Belgium ahead of schedule in response to predicted tariffs on Made-in-China (MIC) vehicles.

Initially, the Swedish brand wants to shift its EV production to Ghent plant in Belgium in 2025, but now the planned shift is going to happen ahead of schedule as the manufacturer aims to mitigate the impact of potential European Union (EU) imports on EV imports from China. Doing so will help the company is maintaining its competitiveness in the market.

Emerging media reports claims that the Swedish brand has already started moving production of the EX30 and EX90 EVs to the European country as European authorities are seriously considering higher tariffs on Chinese EVs to slash competition in favor of local EVs.

The plans to shift production were initially announced in October last year, when the automaker revealed that its Ghent plant would produce new low-cost EX30. However, it was unexpected that the shift would take place so soon.

The report also claims that new tariffs would have a notable impact on all Chinese automakers, and Volvo is one of the most exposed companies to tariffs as it also sells China-made EVs in Europe.

Amidst increasing electric car imports from Chinese manufacturers like BYD and MG, European authorities claim that Chinese government’s unfair subsidies are unduly promoting the growth in Chinese EVs. The EU is expected to announce new tariffs on Chinese EVs as soon as this week. The new tariffs on Chinese EVs would likely take effect on 4th of July, bumping them above the current 10 per cent.

However, a spokesperson for the company clarified in an email, saying it would be premature to speculate about tariffs on EVs imported from China.

In response to a query, the spokesperson said, “It’s premature to speculate on the implications of what this investigation will conclude, or any potential measures. The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as much as possible.”

The plans to shift the production of the Volvo EX30 and EX90 EVs to Belgium ahead of schedule represents the automaker’s agility in navigating global trade challenges. The proactive shift also underscores the company’s commitment to maintaining competitiveness and leadership in the European EV market.