Volvo is the first Euro Brand to import cars from China via an all new Train system.

Volvo Cars has become the first car maker in the world to export China-made cars to Europe by train via China’s new ‘One Belt, One Road’ trade initiative.

The first S90 premium saloons, built at its Daqing plant in China, will arrive at a distribution centre in Zeebrugge, Belgium this week.

The cars have been transported to Belgium via the recently opened China-Europe railway link. The connection brings down the time it takes to transport vehicles to Europe by two thirds compared with the naval route, meaning customers receive their car faster after ordering.

The train route ties Volvo’s global manufacturing and logistics strategy to the multi-billion euro trade flows between China and Europe and the so-called One Belt, One Road initiative that seeks to resurrect the age-old Silk Road trade route for a new era of global trade.

The railway link also illustrates how China is turning into a global manufacturing and export hub for high-end consumer products.

Volvo was the first Western car maker to export a premium China-made car to the US in 2015 with the S60 Inscription. In November of last year, Volvo started building high-end versions of its S90 premium saloon in Daqing for global exports, and will soon be building all S90 vehicles in the factory for global export.

Beyond shorter waiting times for customers, rail is also a smarter choice in terms of the environmental impact of logistics operations. Given the same distance, the CO2 emissions per tonne/km are reduced by a third by choosing rail over sea transport. In this case, the savings will be even higher based on the shorter distance.

Each of the Volvo-dedicated trains traveling between Daqing and Zeebrugge carry around 225 Volvo cars, which are transported in specially designed containers. One container holds three cars at different angles in order to maximise the use of space available inside. Special fixtures ensure that the cars are fastened during transport and do not move.

Initially, trains will depart from Daqine in Zeebrugge on May 31, the same week as China’s Prime Minister, Li Keqiang, visits Belgium. In connection with his visit in the country, Li Keqiang is also scheduled to meet with Volvo Cars’ chairman Li Shufu and CEO Håkan Samuelsson.

Volvo sees China as the place to be, with increased sales and new plants.

Volvo Cars forecasts record sales of at least 80,000 cars in China in 2014

China is poised to replace the US as Volvo Car Group’s (Volvo Cars) largest market in 2014 with sales of at least 80,000 cars, up from 61,146 in 2013, highlighting the company’s growing presence in the world’s fastest growing automobile market. Sales in the US in 2014 are expected to increase in line with the broader market.

The emergence of China as Volvo Cars’ leading market represents an important step towards the company’s long term goal of selling 800,000 cars a year and promises to break a 20 year cycle during which it has consistently sold around 400,000 cars a year.

“Growing demand for first-class safety and environmental performance makes Volvo an ever more attractive brand in the Chinese marketplace,” said Håkan Samuelsson, President and CEO. “As a company at the forefront of technological and environmental developments, Volvo Cars is well placed to enhance its reputation as a premium brand and further strengthen its position in China.”

The premium segment of the car market in China is forecast to grow by 20 per cent this year. Volvo Cars expects to outpace this growth, indicating it is gaining market share from its competitors. Volvo Cars’ confidence is borne out by first quarter sales figures for the China market, which reveal sales rose 25.4 per cent compared to the first quarter of 2013, to 17,286 cars.

During the first quarter, the Volvo XC60 SUV was the best-selling model, followed by the S60L long wheelbase sedan and V40 hatchback. The sales start of the V40 Cross Country as well as an ongoing expansion of the dealer network will further support Volvo Cars’ continued growth in China.

The Volvo S60L Petrol Plug-in Hybrid

At the Beijing Motor Show, Volvo Cars also officially debuts the Volvo S60L Petrol Plug-in Hybrid (PPHEV), underlining its commitment to bringing electrification technology to China. The ingenious petrol plug-in hybrid – an electric car, hybrid car and high-performance car all rolled into one – offers the driver an outstanding combination of dynamic driving pleasure and superb fuel economy.

The S60L PPHEV features the same electrification technology as the Volvo V60 Plug-in Hybrid, the world’s first diesel plug-in hybrid, which has been a groundbreaking success in Europe.

“Creating a powertrain that offers 306 horsepower by blending a 238 horsepower petrol turbo from our new four-cylinder Drive-E engine family with a 68 horsepower electric motor, proves that the most efficient car can also be the most fun to drive. This is our most technologically advanced powertrain ever. It brings us closer to our vision to offer zero emission motoring in the future,” said Håkan Samuelsson.

The S60L Petrol Plug-in Hybrid, with an exceptionally CO2-efficient 238 horsepower Drive-E petrol turbo paired with plug-in hybrid technology, will be launched in China early 2015. The car will be built in the Chengdu plant, which already now produces the petrol-powered Volvo S60L.

Daqing production

Volvo Cars can now also confirm that the first car to be assembled in the Daqing plant in northeastern China will be the Volvo XC Classic, a locally-built variant of the current Volvo XC90, production of which in the Torslanda plant in Sweden will cease this summer. The XC Classic will be sold solely in the Chinese market after its launch later this year. Other models to be built in the Daqing plant will be confirmed at a later stage.