Geely-owned Volvo Cars is to continue its investment in the Ridgeville car manufacturing facility near Charleston, South Carolina, in the US, to maximise the plant's output in the upcoming years.

Global automakers with manufacturing facilities in the US are generally looking to invest heavily and max out on plant capacity utilisation in order to avoid import tariffs on shipments from overseas.

Looking ahead, China’s Geely-backed carmaker has plans to introduce a new hybrid model tailored for the US market to the Ridgeville production line before 2030.

Over the past decade, the company, which is listed on the Nasdaq Stockholm exchange, has channelled $1.3bn into the plant, equipping it for future demand.

These investments are part of Volvo Cars' strategy to enhance production volumes, financial performance, and to fully utilise the plant's capabilities.

Currently, the Ridgeville plant has an installed capacity to produce 150,000 vehicles annually, manufacturing the all-electric EX90 sport utility vehicle (SUV) and the Polestar 3.

In a move to improve the facility's production capacity, Volvo Cars has recently announced that it will start manufacturing its XC60 mid-size SUV in South Carolina from late 2026.

The company said that the XC60 has seen a market uptake in the US, with sales exceeding 27,000 units in the first eight months of this year, marking a near 20% increase from the same timeframe in 2024.

The Ridgeville plant, which broke ground in 2015, boasts high production capabilities, supporting various platforms, technologies, and models.

Volvo Cars Americas president Luis Rezende said: “The Charleston plant is foundational to our strategic growth plan for the US.

“By adding another model into production here, we’ll take a big step towards realising the full potential of our local manufacturing investments and workforce, and accelerate progress towards our ambitious commercial targets in the coming years.”

Volvo Cars has experienced a downturn in global car sales for August 2025, with a 9% year-over-year decrease, selling 48,029 vehicles.

The company has particularly noted a 28% drop in demand for fully electric vehicles, which now represent 20% of its total sales volume.