Volvo opens Singapore facility to support its electric vehicle ambitions

Auto giant Volvo has set up a facility here to support its ambitions to become a fully electric carmaker and a technology leader.

The Volvo tech hub, officially opened on 22 January, spans 9,423 square feet and consists of a research and development lab and office space for engineers. It has 15 employees, with plans to expand the headcount.

Volvo is owned by Zhejiang Geely Holding Group, a major Chinese carmaker.

The tech hub in Kallang Avenue focuses on building capabilities in robotics and electronics engineering, power electronics, artificial intelligence (AI), and data analytics. These areas will support Volvo’s in-house technology and software development.

The new facility is a sign of Volvo’s commitment to innovation and collaboration in Singapore, the company said on 22 January.

Dr Yvonne Tan, who heads the tech hub, told The Straits Times that the centre here is the only advanced one of its kind Volvo has.

Its site in Krakow, Poland, focuses on software engineering development, while the one in India tackles functions such as IT support.

The Singapore hub will be key to deep tech and advanced engineering development for Volvo, said Dr Tan.

Singapore also has an available robotics talent pool to tap, she added, noting: “For robotics engineering, we have a lot of support here in development from all the startups as well as the institutions.”
 

Volvo said that it is unable to disclose the specific investment amount or incentives related to the tech hub.

Economic Development Board executive vice president Cindy Koh said at the opening ceremony: “Many of us can relate to the global challenges facing the automotive sector, such as increased competition, the slower-than-expected take-up in... EVs and how governments are actually imposing import tariffs.”

Ms Koh said that while global electric vehicle (EV) sales increased year on year by about 60 per cent in 2022 and approximately 33 per cent in 2023, 2024 saw a slowdown to about 20 per cent.

She noted that as Singapore is constrained by space to house traditional car assembly plants, it has opted to build strong capabilities in electronics, robotics, and AI in conjunction with public research institutions, universities, and companies.

“As the technology continues to mature and, more importantly, when the public gains confidence in the safety of autonomous vehicles, we will look to scale up,” Ms Koh added.

Volvo car sales in Singapore rose 38 per cent from 2023 to 2024 with EVs accounting for 58 per cent.

Volvo Car Group hit record revenue and operating profit in 2023. Revenue came in at 399.3 billion Swedish krona (S$49.2 billion) while operating profit reached 25.6 billion krona. Global sales hit an all-time high of 708,716 cars.

The Government has doled out incentives and installed more charging points to boost adoption. Around 15,300 charging stations were available islandwide as at November 2024, more than a quarter of the targeted 60,000 points by 2030.

Around 33 per cent of new cars registered here in 2024 were EVs.
 

Source: The Business Times © SPH Media Limited. Permission required for reproduction.