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.

The manufacturer said the decision to also build the EX30 at its Ghent factory in Belgium boosts production capacity in readiness for the expected EX30 demand in Europe as well as for global export, and reflects Volvo Cars’ ambition ‘to build its cars where it sells them as much as possible’, noting that the multi-site production approach has already been adopted for its XC60 and XC40 SUVs which are made in both Europe and China.

“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,” said Jim Rowan, Volvo Cars’ chief executive. “Adding production in Ghent is a logical move as we aim to capture the strong demand for our exciting small electric SUV across the globe.”