Volvo Criticizes EU Tariff Policy, But Still Targets To Be EV Brand By 2030

Volvo EX30. (Doc. Volvo Cars)

JAKARTA - The European Union (EU) has raised tariffs for Chinese-made electric vehicles (EVs) exported to countries on the blue continent. They set additional import duties of up to 38.1 percent for Chinese electric cars starting July 4.

Of course, this decision is considered controversial, especially from various parties including electric vehicle manufacturers in Europe, one of which is Volvo.

Volvo, an automotive brand from Sweden now under the auspices of Zhejiang Geely Holding Group, criticized this policy and supported open and fair trade. Volvo considers that it is not only producers but consumers who will pay this tariff to get EVs from China.

"Whatever gets in the way is not a good thing," said Volvo Cars CEO Bjorn Annwall, quoted by Automotive News Europe, Wednesday, June 19.

Hal tersebut juga berdampak terhadap aktivitas produksi dari Volvo. Manufacturer otomotif tersebut harus memindahkan produksi EV buatan China ke Belgia. Mereka sebelumnya mempertimbangkan untuk menghentikan penjualan mobil listrik buatan China yang ditujukan ke Eropa jika tarif diberaksi.

With this transfer, especially the production of EX30 and EX90 Volvo models from China to Belgium, it is hoped that Volvo will continue to sell in Europe. Production of several Volvo models marketed in Great Britain is also likely to be moved to Belgium.

Despite this policy harming the manufacturer, Annwall said that the brand is still maintaining its strategy planning by stopping the sale of combustion cars (ICE) and selling only pure EVs in Europe from 2030.

"The next few years will be a very difficult year," added Annwall.

Europe is still the largest market for Volvo by obtaining sales of 33,252 units in May (up 27 percent). Sales of the electrification vehicle segment have also increased rapidly in Europe by 34 percent or sales of 22,028 units.