Press release - India

Volvo Group collaborates with Indian supply partners to accelerate its journey toward becoming climate-neutral by 2040

2024-08-20

Volvo Group is committed to becoming a climate-neutral company by 2040, and this commitment includes its supply chain & global suppliers from India. In 2022, Volvo Group developed and started sourcing Fossil Free Castings from India. Today, Volvo Group has set a new milestone, expanding its fossil-free sourcing in India to additional components. The fossil-free components from Indian supply partners will be part of Volvo Group Trucks and potentially reduce CO2 emissions by 13,000 tons annually.

Left to Right - Satheesh Kumar D (Executive VP - Marketing, Rane) Kevin Coons (Vice President Vehicle & Emobility Purchasing North America, Volvo Group) Mark Bamber (Head of Circularity & Remanufacturing, Volvo Group), Gowri Kailasam (CEO, Rane), Mokrane Brahmi (Head of Steering & Suspensions Purchasing, Volvo Group) Venkatagiri K S (Executive Director, CII)

Volvo Group has collaborated with two key supply partners from Chennai, India – Rane (Madras) Ltd and Madras Engineering Industries Private Limited (MEI) in this endeavor.

In collaboration with Rane (Madras) Ltd, Volvo Group has developed fossil-free tie rods and linkages, essential components that steer the wheels of Volvo trucks. These products are manufactured using 100% renewable energy across the supply chain, eliminating the use of fossil fuels, and hazardous materials. The innovative approach also includes the use of fossil-free steel and electric vehicles for material movement, ensuring a truly sustainable production process.

Volvo Group has also collaborated with Madras Engineering Industries Private Limited (MEI) to create fossil-free ferrous castings, another critical component of vehicles. These castings, subjected to extensive stress and fatigue, are produced using 100% renewable energy and 100% metallic scrap without virgin materials like pig iron. The process is entirely landfill-free and devoid of toxic elements, resulting in products that are 100% recyclable.

Left to Right: Priya Sriram (Managing Director, MEI), Sriram Sivaram (Joint Managing Director, MEI), Venkatagiri K S (Executive Director- CII), Mark Bamber (Head of Circularity & Remanufacturing, Volvo Group) Pierre Masclet (Head of casting and Forging Purchasing, Volvo Group) Ganesh Karthick (Head of Vehicle Uptime and Powertrain Purchasing, India)

The tie rods and linkages developed with RANE are estimated to lower CO₂ emissions by 600 tons annually for Volvo. If implemented across other supply partners producing similar components, the reduction could amount to several thousand tons per year. Similarly, MEI’s fossil-free castings are expected to cut emissions by 12,400 tons of CO2 annually for Volvo, with the potential for broader industry impact if adopted by additional supply partners. Components from both supply partners are set to be introduced in Q1 2025.

The products manufactured in India have been certified by the Confederation of Indian Industry’s (CII) Green Products & Services Council, earning GreenCO and GreenPro certifications. These certifications affirm the products' adherence to global sustainability standards and compliance with country-specific policies.

Date: Chennai, 20th August 2024

Journalists who would like further information, please contact: Paul Abraham, Head of Media Relations, Volvo Group, +91 97312 22700, paul.abraham@volvo.com

The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs 105,000 people, has production facilities in 18 countries and sells its products in more than 190 markets.