Volvo to produce its first assembled EV in Malaysia
SELANGOR, March 18– Volvo Car Malaysia Sdn. Bhd, a prominent automobile manufacturer announced the company’s electrification plan to produce its first assembled electric vehicle.
The company plans to manufacture the Complete Knocked Down or CKD unit of 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 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, Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry says, the National Automotive Policy 2020 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.
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.
Investment aspirations
Datuk Arham Abdul Rahman, CEO of the Malaysian Investment Development Authority (MIDA) echoing the Senior Minister states, “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 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, Advance Driver Assistance System, EV batteries, and battery management systems.
Volvo – a global plan
Charles Frump, Managing Director of Volvo Car Malaysia, says, “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.
EEV ecosystem
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 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.