Volvo
The EX30’s most significant selling point is its price. Starting at a minimum of $35,000, it is expected to be over $8,000 cheaper than Tesla’s compact SUV, the Model Y, which has similar specifications.
Volvo can produce the EX30 at such a low price due to using Chinese resources and national subsidies, significantly reducing manufacturing costs. Moreover, Volvo has manufacturing facilities within the U.S., including a factory in South Carolina, allowing it to avoid the 27.5% tariff imposed on Chinese-made cars. In an interview with Reuters, a Volvo official explained, “The unique combination of China’s cost advantage and Volvo’s ability to avoid mass tariffs is reflected in the pricing.”
If Volvo succeeds in selling the EX30 in the U.S., it expects to generate a profit margin of 15-20% per unit. Reuters reported, “The launch of the EX30 signals that not only the EV industry but the entire U.S. auto industry is facing fierce competition and threats.”
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