The plant has been setup at an initial investment of INR 250 crores and plans to employ over 800 people in the next 5 years. The facility was inaugurated by the Chief Minister of Karnataka, Mr. Siddharamaiah, Union Minister of Road and Transport, Mr. Oscar Fernandes and President and Chief Executive of Scania Global, Mr. Martin Lundstedt.
Prior to the setting up of this plant earlier this year, the company used to meet demand from various customers through import. Scania have been in India for the past few years since 2007 through their partnership with Larsen and Toubro.
In 2011, the company set up Scania Commercial Vehicles India in a bid to boost their sales in the Indian commercial vehicle market. The company has recently launched a wide range of on-road haulage trucks which have been designed exclusively for the Indian market. These include R 500 6×4, G 460 6×4 and P 410 6×2 while P 410 8×4 is a mining tipper which was launched at the end of 2012. 2013 has seen the introduction of a new coach range which is offered in three models each designed for inter city and charter facilities and are the epitome of luxury.
From the Narsapura plant, the company expects to reach targets of 2,500 heavy haulage trucks and 1,000 intercity buses and coaches per year. The facility will also serve as the company’s head office and center for commercial operations in India and from where final assembly of trucks and body parts will be undertaken.
Scania inaugurates first manufacturing facility in India
Global truck- and bus manufacturer Scania invests Rs 250 crore and plans to employ over 800 people in the next five years
Bangalore, October 29, 2013: Scania Commercial Vehicles India today announced plans to manufacture about 2,500 heavy haulage trucks besides 1,000 inter-city buses
and coaches annually at its facility in Narasapura here.
Currently the localisation is 18 per cent for trucks and 100 per cent for bus bodies. Scania will also employ over 800 people at this facility within five years. The manufacturing facility with initial investment of Rs 250 crore was inaugurated by Karnataka’s Chief Minister, S. Siddaramaiah in the presence of Union Minister for Road and Transportation, Oscar Fernandes and Mr. Martin Lundstedt, President and Chief Executive Officer of Scania Global.
The facility will serve as company’s head office and centre for all commercial operations across the country. The operations will consist of final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse for timely service.
“It gives me great pride to see one of the largest global companies setting up plants in Karnataka,” said Mr. Siddaramaiah. “It will not only provide an impetus to industrial growth in the region but also present significant employment opportunities to local residents. With its superior technological processes, large-scale manufacturing set-up and eco-friendly focus, the plant is a testimony to our emphasis on inspiring corporate India to reach greater heights.”
Mr. Lundstedt said the state of Karnataka is an ideal location for company’s manufacturing operations due to proximity to customers. “Today marks the beginning of a new era for us in India, and it is our largest industrial footprint in Asia so far.”
The Narasapura plant will house two manufacturing units – one for truck assembly and another for buses. Scania started production of trucks at the new facility in Narasapura during June and production trials have started for mining and off-road trucks. Production of on-road trucks will start soon and the bus rollout is planned for the first quarter of 2014.
“Today’s ceremony is extremely significant to us, “Mr. Anders Grundströmer, Managing Director of Scania Commercial Vehicle India and Senior Vice President of Scania Group. “It illustrates our willingness to meet commitments and our ambition to provide sustainable transport solutions. I am sure this production line along with our total operating economy concept will create great quality vehicles and will be a strong witness of the Made in India label globally.”
With the country’s highway infrastructure improving and hub-and-spoke model gaining increasing acceptance, the domestic truck and bus industry is witnessing polarization.
As the growth in heavy commercial vehicles segment outperforms overall industry growth rate, Scania aims to take the way India views transportation to the next level in line with the latest world-class manufacturing practices.