Volvo was one of the biggest accounts to be worked on from Sapient Nitro's Shanghai office.
Representatives from Sapient Nitro were unable to provide any comment on the development. It is believed that Euro RSCG's sister agency Arnold Communications has won the account in China.
Volvo's digital account, held by MPG digital agency MediaContacts in China, remains unchanged.
The brand is renowned across Europe for its stylish, durable and safe vehicles, but has struggled outside of that home base.
However according to local press in China, Volvo's sales in the first half of 2011 spurted 36 pe rcent to 21,000 units. The best-selling Volvo was the XC60 crossover, followed by the company's China-only S80L flagship sedan and the midrange S60 sedan.
Freeman Shen, senior vice president of Volvo Cars China, said the group's plans for a Chinese plant in Chengdu, Sichuan Province, are still awaiting government approval before construction can start.