So far it is selling a mix of combustion-engined cars and plug-in hybrids. Its first fully electric vehicle that it said is coming soon is expected to be the XC40 Recharge.
To date, Volvo Car Malaysia is the first and only automotive brand in Malaysia to offer a full range of Completely Knocked-Down (CKD) plug-in hybrid electric vehicles(PHEV) all assembled in Malaysia.
It started with the XC90 in 2015 and completed the cycle with the launch of the XC40 Recharge in March 2021.
READ MORE: Big push for electric mobility in Malaysia, but is it enough?
"The latest tax incentives announced during the announcement of Budget 2022 further complement our efforts, as we believe it is a positive step in encouraging Malaysian car buyers to adopt EVs and live a more sustainable lifestyle," said Volvo in a statement.
It said the new tax incentives would spur car makers as a whole to adopt or increase their efforts in offering EVs in Malaysia.
"Collective action is necessary, as we believe every automotive player should play a role in minimising pollution and carbon emissions in Malaysia," said Volvo.
At present, talk of local assembly of EVs is premature until the EV ecosystem is sufficiently developed to make a business case for it.
