When the Volvo EX30 was revealed last summer, it was obvious that the compact EV was destined to be a very big deal for such a small car. At a time when the U.S. electric market is craving more affordable options, the EX30's $34,950 starting price immediately seemed like an enticing proposition.
But the secret ingredient to the EX30's low price could be its undoing in the U.S. Or at least, the source of recent setbacks.
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A year after the EX30's debut, it's unclear whether the China-built Volvo will be able to maintain its low price in the face of new 100% tariffs on EVs from that country. And to make matters worse, reservation-holders who were expecting the car to go on sale in the U.S. this summer tell InsideEVs they've gotten little to no details about when the EX30 will arrive stateside, or what price tags they may be looking at now.
“I am quite certain Volvo USA is truly in a bind over all this,” said Charles Anthony, a former EX30 reservation holder in Maine. Anthony is a longtime EV owner who was excited about the EX30, but told InsideEVs he doesn't plan to purchase one now because he wanted to drive the car first.
He also fears the new tariffs on Chinese-made cars may create a harsh new reality for the Swedish automaker.
“With the current market sentiment, a U.S. election and the bugbear of a U.S. price for the EX30, there is no clear way to know how to price it," he said. "If the EX30 ends up north of $40,000, then it will sell as well as [some] compliance EV of a few years ago.”
Gallery: 2024 Volvo EX30
Originally, building the EX30 in China—Volvo is owned by the Chinese conglomerate Geely Group—seemed like the key to its affordable price tag, even when accounting for 27.5% tariffs on Chinese cars. Volvo officials said they were confident they could still deliver on the EX30's promised price. (“Anything we have to pay to the government is accounted for in that price,” a Volvo official told me at the car's U.S. debut last year.)
But that was last year. Now, the Biden Administration is quadrupling tariffs on EVs from China, and it's possible the EX30 could be their first high-profile victim. Volvo isn't saying what the EX30 could cost here now, or how it can even sell the car stateside at that price without lighting money on fire. While delays are unfortunately common in the EV world—General Motors, Volkswagen, Tesla, Rivian and most other automakers have endured them—they're most often due to software challenges or other teething issues with new technologies. The Volvo EX30's delay is instead one of the first due to Chinese tariff issues.
For now, Volvo's American representatives say they're being prudent about what could happen stateside. Volvo Cars USA spokesman Russell Datz didn't offer any new details about the timing of the car's release or pricing information, but said the automaker is looking into how these tariffs might impact the EX30.
"All I can tell you is, we're investigating the tariffs," Datz told InsideEVs. "When there's a resolution, we will provide more information."
An Important Debut, Derailed
The EX30 is emerging as the perfect example of the complicated interplay between still-high EV manufacturing costs, tariffs and international politics.
The EV took the world by storm when it was revealed last August. It represented new territory for Volvo, a company that's never really played in the affordable compact space. It promised up to around 275 miles of range and a cleverly packaged interior marked with Scandinavian minimalism. Since going on sale in Europe, it's proved to be a major sales hit. It has scores of $500 deposits for pre-orders in the U.S. (In the interest of full disclosure, I too was an EX30 reservation-holder until recently, but I canceled my order to get something larger.)
In theory, these new U.S. tariffs could mean a much more expensive EX30 than originally anticipated—or, as some fear, the car's outright cancellation here. (It is also unclear how the same tariffs will affect the Polestar 2, another Geely product, which is also made in China.)
Production of the EX30 in Belgium will follow in 2025. But while bringing a Belgian-made car to the U.S. might circumvent tariffs that target China, increased European labor costs could drive its price up, said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.
"The automaker may need to wait until European production begins, but that will delay the EX30 by more than a year," Fiorani said. "Currently, the imported [from China] EX30 sells for around $40,000 in Europe and a locally sourced model likely won’t cut that cost, leading to a pricier version if it were to make its way to America."
The EX30's much-touted base price is for the single-motor, rear-wheel drive version. The all-wheel-drive Twin Motor versions are expected to start at $44,900. Fiorani added that such a compact car is likely to be uncompetitive if its U.S. price goes up too much; it also could run into the bigger XC40 Recharge crossover, which starts at $52,450.
"If the price is significantly different from the proposed $35,000 price tag, they’re going to miss the market on that model," he said. "With the larger Tesla Model Y starting around $45,000 and eligible for the IRA incentives, the window for the Volvo is narrow... this model was more important to Volvo before growth in the EV market slowed down and the recent tariffs must have caught corporate off guard."
Volvo has several more fully electric models planned in the coming years, perhaps most notably the EX90 crossover, a successor to the brand-redefining XC90. That crossover will be built in South Carolina, so it won't have the EX30's China problem. Fiorani speculated that this is where Volvo could put its attention instead.
"While [the EX30] would be a key addition to the lineup, focus has to shift toward the much more profitable EX90," he said. "If the bean counters have anything to say about it, the EX30 has to be dead on arrival."
Customers Asking Questions
Meanwhile, reservation-holders and prospective customers in the U.S. have been left wondering what's going on with a car many had been very excited about. Anthony said that he’s gotten little information from dealers. “All the New England dealers I contact seem to have a script to hand, which they recite to the inquirer, and poof, that is all,” he said
On the social media platform Threads, several users reported hearing nothing from their Volvo dealers after putting down their $500 deposits and getting no clear answers when they called to ask for more information.
Some indicated they canceled their reservations amid the radio silence. "Loved the idea of an affordable Volvo and reserved one," one user said. "Sadly had to cancel and buy an Ioniq 6 in May. They promised the car to be delivered in summer 2024 but never heard [from] them.
Another added, "Haven’t heard a word. And most likely going to cancel my reservation and get my $500 back."
Still, Kevin Flanagan, the chairman of Volvo's Retail Advisory Board—a group that coordinates with Volvo on the needs of U.S. dealers—told InsideEVs that while had couldn't offer concrete details on timing, he is optimistic Volvo will sell the car here.
"They have not said that it's not tenable," Flanagan told InsideEVs. "They're giving us the indications they're moving forward with it... I think that Volvo realizes that they need to bring this car in at a very competitive price point, and that is the communication that they have given us."
Flanagan added that he thinks "the car will be worth the wait," and that he expects it will succeed in bringing new customers into the Volvo brand like the company expects.
"It's an amazing car," he said. "I've driven it. It's fun, it's sporty. Great design, amazingly spacious for the class of car that it's in. And I think that we're going to do very well with it when it does arrive."
Contact the author: patrick.george@insideevs.com
