Volvo Car Manufacturing Malaysia was previously known as Swedish Motor Assemblies Sdn.
[4][5] Volvo granted the group the distributorship rights, and the Federal Auto Company Sdn.
[6][7] SMA was established in response to a government-proposed initiative to set up an automotive industry in Malaysia.
Construction of the Swedish Motor Assemblies plant commenced in March 1967 in an industrial estate in Batu Tiga, near Shah Alam.
[7] The Minister of Transport, Sardon Jubir, test drove the first Malaysian-assembled Volvo the following month.
[8] The Minister of Commerce and Industry, Lim Swee Aun, officially opened the Swedish Motor Assemblies plant on 17 February 1968.
[9] In April 1941, Ford Malaya built Southeast Asia's first fully-fledged automobile assembly plant in Bukit Timah, Singapore.
Distribution of vehicles is handled by the in-house sales organisation, Volvo Car Malaysia Sdn.
[13] The locally assembled (CKD) XC90 T8 Twin Engine was formally launched on 1 June 2016, approximately six months after the debut of the fully imported (CBU) XC90.
[15] Volvo had greatly invested in the plant's infrastructure to handle to the company's new Scalable Product Architecture (SPA) platform.
The locally assembled XC90 was granted EEV status and significant tax exemptions, allowing it to be priced well under its fully imported, non-hybrid/EV competitors.
[13] In terms of specifications, the CKD XC90 is almost identical to the CBU XC90, with differences being limited to paint options and other cosmetic changes.
[15] VCM will export the new Malaysian-assembled XC90 to neighbouring Thailand, and the company has also announced plans to assemble the upcoming S90 in the near future.