Almost a decade<\/span> ago, Volvo drove into the modern era by going big. Literally. The second-generation XC90 crossover<\/a> that launched in 2015 helped reset a brand associated with boxy station wagons by offering innovative hybrid engines, striking styling and a big tablet center screen that felt right out of the Tesla playbook.<\/p>\n Now, the car that\u2019s poised to be Volvo\u2019s next big hit is actually pretty small \u2014 and affordable, too.<\/p>\n The EX30, which recently made its North American debut in New York, is a car full of firsts. Volvo\u2019s first compact fully electric crossover is its quickest car ever and is outfitted with an innovative, yet cheaper interior made with sustainable materials \u2014 a combination the automaker believes is key to turning the EX30 into a mass-volume, mainstream success.<\/span><\/p>\n In short, this small car is a big deal for Volvo and a major evolution of the brand. And it\u2019s already making a huge splash.<\/p>\n \u201cThe overall reception has been exceeding expectations, multiple times,\u201d David Mele, the EX30\u2019s product manager in the United States, said in an interview. \u201cIt\u2019s been remarkably positive. We\u2019re seeing that basically, every market that Volvo operates in is really excited about this car.\u201d<\/p>\n Image Credits:<\/strong> Volvo<\/p>\n<\/div>\n A major reason is the EX30\u2019s price tag: It starts at $34,950, instantly making it one of the more affordable EV options in the United States. In a year when electric adoption has seen some ups and downs \u2014 some critics worry demand is slowing as EVs pile up on dealer lots<\/a> \u2014 the EX30 will come in well below the average $53,000 price tag<\/a> these cars command lately.<\/p>\n Very few players exist in America\u2019s affordable EV space right now: There\u2019s the Tesla Model 3 and Model Y, selling like crazy after price cuts and tax rebates; the Chevrolet Bolt, which General Motors reversed course<\/a> on discontinuing; and a handful of others, like the Kia Niro EV and Hyundai Kona EV and Hyundai Kona Electric. The latter two can easily cross into the $40,000 range at dealer lots.<\/p>\n It\u2019s not that most people aren\u2019t interested in EVs, analysts say, but that they\u2019re turned off by their prices at a time when interest rates are high and the economy faces uncertainty ahead. Data firm AutoPacific found in a recent survey<\/a> that a price tag below $35,000 is what it would take for many people to flip the switch.<\/p>\n The EX30\u2019s right in that sweet spot, undercutting even Volvo\u2019s next-cheapest car, the compact gas or electric XC40, by a few thousand dollars. The EX30 is about 10 inches smaller than the XC40 and 20 inches smaller than Tesla\u2019s world-beating Model Y crossover.<\/p>\n Previous attempts at compact cars haven\u2019t always gone great for Volvo. Today, its top-selling models in the U.S. are the midsize XC60, followed by the bigger XC90. Past entrants like the compact C30 hatchback and V50 never made a big sales splash, either.<\/p>\n In a lot of ways, the EX30 is risky, but Volvo is banking on that electric powertrain to attract customers it wouldn\u2019t have had before.<\/p>\n Mele said the target EX30 customer is \u201cpre-family\u201d buyers without kids or even \u201cpost-family\u201d parents and grandparents. It could be a lot of buyers\u2019 second or third car, or their first EV, and their first Volvo. That\u2019s\u2026 a lot of people.<\/p>\n In short, Volvo\u2019s going for mass appeal on this one \u2014 something it hasn\u2019t really gone in for terribly often before. \u201cIt\u2019s not going to be a niche product,\u201d Mele said. (He declined to discuss sales targets for the EX30.)<\/p>\n Scale fits with Volvo\u2019s goals of going \u201chalf-electric\u201d by 2025 and all-electric by 2030, Mele said. But it\u2019s also a key part of initiatives driven by Volvo\u2019s Chinese parent company, Geely Holding Group. Between Volvo, the more performance-focused Polestar, the British sports car maker Lotus and several EV-focused brands not sold in America like Lynk & Co, Geely is increasingly rising as the Chinese auto conglomerate looking to take over the world \u2014 perhaps even without its customers realizing it.<\/p>\n In fact, like just a handful of other cars sold in the U.S. these days, the EX30 will be made in China. That means it won\u2019t be eligible for any U.S. tax credits<\/a> and that it\u2019s subject to a 27.5% tariff on Chinese-made vehicles \u2014 making that price tag even more impressive. (\u201cAnything we have to pay to the government is accounted for in that price,\u201d Mele said, declining to speak on the potential profitability of the car.)<\/p>\n Mele said Volvo is still evaluating where the car will be built over the long term.<\/p>\n While Volvo won\u2019t say anything further officially, it\u2019s plausible that the company could decide to follow the moves of several competitors and put production somewhere in North America. Volvo is already expanding its South Carolina plant to build its flagship EX90 electric crossover. \u201cOur goal, long term, is to build cars where we sell,\u201d Mele said. \u201cThat\u2019s both just good from a manufacturing perspective but also cuts down on carbon emissions.\u201d<\/p>\n Other markets aren\u2019t as aggressive on China tariffs, of course. But at a time when European automakers are deeply concerned about lower-cost Chinese cars eating their market share<\/a> on their home turfs, Volvo is one European brand that could have its kladdkaka<\/a> and eat it too.<\/p>\nLittle car, big deal<\/h2>\n
Swedish roots, Chinese production<\/h2>\n
Specs that matter<\/h2>\n
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