Volvo Cars Malaysia (VCM) has declared its intention to make Malaysia a major hub for electric vehicles in ASEAN. To reach this goal, VCM will begin exporting locally assembled EVs to Vietnam and the Philippines this year and Indonesia in 2022. Volvo Car Group’s aim of becoming an all-electric car company by 2030 is reflected in this plan. As part of this strategy, VCM plans to have 75% of its sales be electric models locally by 2025. In 2022, the total sales for all models were 3,194 units.
VCM is the first Malaysian carmaker to assemble EV’s within Malaysia itself. Transport Minister Anthony Loke has noted that foreign assistance is necessary to build the Electric Vehicle industry in the country. Charles Frump, the Managing Director of VCM, expressed that sending overseas fully assembled electric cars from Malaysia is just one of the many initiatives they are taking to make Malaysia a hub for electric vehicles in the ASEAN area.
In addition to VCM’s plan, Volvo is embarking on a direct-to-consumer (DTC) model to build its customer relationship. The company’s Online-Sales platform allows for a hassle-free buying experience for customers, as they can view the available stock and enjoy price transparency.
A 2022 PwC survey for the North American market revealed that online sales of vehicles are reaching a tipping point, with 64% of dealers surveyed believing that between 20% to 40% of all car sales will move online. As for the local front, EV adoption remains low, and industry observers continue to push for more significant incentives from the government to support the sector. According to the Malaysian Automotive Association, Malaysia only has 0.96 EVs per 1,000 residents, compared to 3 EVs per 1,000 residents in China. As of October 2022, there were 2,093 EVs registered in Malaysia. Fitch Solutions forecasts sales of passenger EVs to reach 4,449 units in 2023.
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The Natural Resources, Environment, and Climate Change Minister, Nik Nazmi, hinted that there would be more EV-related incentives in Budget 2023. The budget is scheduled to be tabled on February 24.
