Volvo’s biggest China plant is now zero-carbon



Now there’s a ‘dam’ good reason to buy a made-in-China Volvo, especially if you care about your carbon footprint….


CHENGDU, CHINA — Volvo Cars’ biggest manufacturing plant in China now runs on renewable energy. The Swedish carmaker says switching to a carbon-neutral electricity supply for its Chengdu factory will cut 11,000 tonnes of CO2 emissions a year.

The move means Volvo’s manufacturing network is now 80 percent carbon neutral.

Nearly two-thirds of the Chengdu plant’s power is from hydroelectricity generated at a local dam. Solar, wind and other renewable sources make up the rest.

Volvo also builds cars in Sweden (where it also runs its head office and product development), Belgium and the USA. China is the only country where it has two car plants. The Chengdu facility supplies the XC60 to Singapore while the S90 comes here from another plant in Daqing.

It also has engine factories in Sweden and Zhangjiakou in China.

A made-in-China Volvo XC60 bound for Singapore

Volvo is racing towards ambitious climate friendly targets. It wants all of its manufacturing to be climate-neutral by 2025, and aims to be a climate-neutral company by 2040. In five years’ time, it wants half its sales to come from fully electric cars, with hybrids making up the rest.



Volvo sold 705,452 cars in 2019, an all-time record. It had plans to put another 800,000 cars on the road this year. The Covid-19 pandemic might interfere with that ambition to sell more cars than ever, but the company’s goal to put less carbon into the atmosphere is well on track.


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Leow Julen
CarBuyer's managing editor is a lot older than he behaves. He's been writing about cars for 25 years. Someday he might do it coherently. Ju-Len believes in world peace and V8s, but not necessarily in that order.