Volvo Car Malaysia Sdn. Bhd. has announced the company’s electrification plan to produce its first assembled electric vehicle (Complete Knocked Down (CKD) unit of electric vehicle (EV) at its manufacturing facility in Shah Alam, Selangor.
This will be the first automotive brand in Malaysia that has a completed plug-in hybrid (PHEV) line for all car models. The production of this model will be the first electrification effort by Volvo Car Malaysia in the country and the plans to export the locally assembled XC40 Recharge Pure Electric model to the ASEAN market. Moving forward, Volvo Car Malaysia plans to launch one 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 the 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 Senior Minister 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.
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 percent. 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.