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Volvo Car Malaysia Announced To Produce Its First Assembled Electric Vehicle (EV) In Malaysia

Volvo Car Malaysia Announced To Produce Its First Assembled Electric Vehicle (EV) In Malaysia

Selangor, 18 March 2022 – Volvo Car Malaysia Sdn. Bhd., (Volvo Car Malaysia) a prominent automobile manufacturer announced the company’s electrification plan to produce its first assembled electric vehicle (EV). The company plans to manufacture the Complete Knocked Down (CKD) unit of electric vehicle (EV) at its manufacturing facility in Shah Alam, Selangor. Volvo Car Malaysia will be the first automotive brand in Malaysia that has a completed plug-in hybrid (PHEV) line for all car models.

In the Electrification Plan launching held at Petaling Jaya, Volvo Car Malaysia announced that the company will begin producing fully EV models in Malaysia. They introduced the XC40 Recharge Pure Electric model during the event. The production of this model will be the first electrification effort by Volvo Car Malaysia in the country and the company’s plans to continue leading the early automobile electrification initiative by exporting the locally assembled XC40 Recharge Pure Electric model to the ASEAN market. Moving forward, Volvo Car Malaysia plans to launch one (1) new locally assembled EV model every year beginning from 2022. This is in line with the company’s plan for going into full electrification by year 2030.

At the launching ceremony, Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI) said, “The National Automotive Policy (NAP) 2020 has emphasised the need for adoption of Energy Efficient Vehicles (EEV) including EV in line with Malaysia’s commitment to reduce carbon emissions under the United Nation Framework Convention on Climate Change. The NAP has also outlined several specific initiatives to strengthen the EEV and EV ecosystem that will spur technology transfer and develop know-how for the local automotive industry to continue to thrive.

One pivotal project under the Twelfth Malaysia Plan (12MP) is the Centre of Excellence for Future Industry which operates as a high-end shared facility on the advancement of future technologies and innovations in Malaysia. This will be a key catalyst to the development of the Next Generation Vehicle, which includes EV with intelligent mobility functions, and will enhance our local industry capabilities not only in hardware but software solutions.”

The Senior Minister also added that Volvo’s move on making Malaysia one of its electrified vehicle hubs with models assembled here not only to serve the Malaysian market but also as an ideal gateway for the ASEAN market could not have come at a more opportune time. This is aligned to the Government’s pledge to drive sustainability and inclusivity as outlined in the Twelfth Malaysia Plan (12MP), with the commitment to achieve net-zero GHG emissions by 2050 earliest.

Datuk Arham Abdul Rahman, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) echoing the Senior Minister stated, “MIDA welcomes this project and acknowledge the importance of EV as the future of mobility. Indeed, this project will encourage similar investments in line with the Government’s National Investment Aspirations (NIA) and the Environmental, Social and Governance goals. Moving forward, we hope to develop our very own EV industry and its ecosystem.”

As technology-driven trends such as diverse mobility, autonomous driving, EVs and connectivity will shape the industry over the next 10 to 15 years, the National Automotive Policy 2020 was developed to advance Malaysia as a regional leader in automotive manufacturing, engineering, technology, and sustainable development. Potential investors are welcome to make strategic investments into the areas of electric and autonomous vehicles, Next-Generation Vehicles (NxGV) and their related core and critical components such as engines, powertrains, Light and Radio Detection and Ranging (LIDAR and RADAR), Advance Driver Assistance System (ADAS), EV batteries, and battery management systems.

Charles Frump, Managing Director of Volvo Car Malaysia, said “Volvo Car Malaysia is ready to implement Volvo’s global plan for a fully electric line-up by 2030, starting with the launch of the XC40 Recharge Pure Electric model.

The XC40 Recharge Pure Electric is just one of our many steps to encourage consumers to adopt EVs for a more sustainable future. By mid-decade, Volvo aims to reduce its overall carbon dioxide (CO2) lifecycle emissions per car by 40 per cent. This means more than simply reducing tailpipe emissions – electrification is not enough. We must also reduce CO2 emissions across our operations and supply chain.”

Malaysia is the third largest automotive market in ASEAN, making the automotive industry a strategic perk of the country’s manufacturing sector. There are currently 28 manufacturing and assembly plants in Malaysia producing motor vehicles (passenger vehicles, commercial vehicles, motorcycles, and scooters); and automotive parts and components. The automotive ecosystem also encompasses research and design, product and process development, materials management, and after-sales services.

The production of the first locally assembled EV by Volvo Car Malaysia will be the catalyst to advance the automotive industry in line with the NAP 2020 and propel Malaysia to become a hub for EV in the ASEAN region.

As of 2021, MIDA has approved 36 projects within the EEV ecosystem with an approved investments amounting to RM1.9 billion. Most of the approved investments were from foreign sources amounting to RM1.1 billion (58 per cent), while the remaining of RM0.8 billion (42 per cent) were from domestic direct investments. More specifically, Malaysia secured ten (10) investment projects related to the manufacturing and assembly of electric vehicles and their components. These projects worth of RM1.2 billion investments will create more than 900 employment opportunities in the country.

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About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

About Volvo Car Malaysia
Volvo Cars established its presence in Malaysia in the early 1960s through an independent importer and distributor – Federal Auto Cars, before formally establishing Volvo Car Malaysia in 1999. Since then, Volvo Car Malaysia has gone from strength to strength and built a network of 14 dealers across the country.

The popularity and demand for Volvo cars locally had led to the establishment of the Volvo Car Manufacturing Malaysia in 1967 (previously known as Swedish Motor Assemblies), which is now Malaysia’s oldest and longest-running vehicle assembly plant. In 2016, Volvo Car Malaysia was the first market to locally assemble the XC90 PHEV outside of Sweden, which paved the way for the assembly of other Volvo PHEVs and recharge the brand’s commitment to providing a sustainable and safe driving experience. Volvo Car Malaysia sells premium-segment car models in two versions: sedans (S60 and S90) and SUVs (XC40, XC60 and XC90).

As of February 2021, it became the first automotive brand in Malaysia to offer a full range of PHEVs for all its models. In line with its global vision of becoming climate neutral by 2040, Volvo Car Malaysia is committed to bringing greater awareness on the current climate challenges to Malaysians and aims to become a leader in sustainability in the automotive industry through its product offerings, business operations, and local initiatives.

For more information, please contact:

MIDA
Mr. Nazuki Abdullah
Director, Transportation Technology Division, MIDA
Telephone: 03-2267 6688
Email: [email protected]

Volvo Car Malaysia
Ms. Elaine Ng
Telephone: +60 12-290 1108
Email: [email protected]

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