Scania aims to make India export hub for sourcing parts

With an aim to make India one of its top 5 markets, Scania AB, owned by Volkswagen Group is set to start commercial production of buses at its Benguluru plant later this month.

Scania Bus make in india
Scania India Bus and Truck manufacturing plant in Karnataka.

With a top priority of enhancing operations in India, Scania AB’s Henrik Henriksson, Executive Vice President, Head of Global Sales and Marketing has confirmed that the auto major which commenced operations in the country around 3 years ago with one dozen employee,s now has over 600 employees.

The company has made investments of Rs 350 crores in the first phase of its bus and truck facility in Bengaluru. Annual current capacity stands at 1,000 buses and 3,000 trucks, with a hope of reaching full capacity utilization sometime soon. The next phase of investment will come-in once the current annual capacity is met. Considering market developments, which look promising, specially in the mining sector with the clarity granted by the government on coal blocks, Scania expects it to come in soon.

Scania, unlike other global automakers, has one product policy. It has no specific India centric products. Whatever the company sells in global markets are on sale in India. This year, Scania AB plans on selling around 1,200 trucks and buses. They are also planning on making India a global hub for sourcing of spare parts and exporting fully built buses and trucks to South Africa and Latin America.

Apart from the plant, Scania has also invested an undisclosed sum on R&D in India. Scania also has manufacturing plants in Sweden, Argentina, Brazil, Russia, Poland, The Netherlands, and France.

via Economic Times