Scania Commercial Vehicles in India have been operating in India since 2007 to great effect. They are now performing so well that they are now investing a total of Rs 150 crore which is approximately £18.9 million so that a new manufacturing facility will be built next year in India.
The investment which would mean a new production being built in Bangalore in the Narasapura Industrial Area would produce a total of 1000 inner city buses and coaches. There will be 2000 heavy haulage trucks too, all over a five a year period.
Henrik Fagrenius, the Scania Managing Director said that the timing is very important to reach customers. He said “This investment furthers Scania’s commitment to the Indian market and this is the right moment for us. This unit will enable us to shorten our lead times and enhance service levels to our customers.”
A better and more efficient process to customers
He went to say how much more efficient the company’s process will be. “Scania foresees a number of benefits with establishing the new plant. This will also go a long way in sourcing of components locally from India. The manufacturing of complete trucks locally in the country means that we can cut lead times further and broaden our product offering. Our service to customers will also be improved by having a parts depot in the country.”
Versatility of Scania’s products
Mr Fagrenuis added that Scania’s products are versatile and can adapt to different industries. “There is increasing demand for vehicles and engines of the quality and performance delivered by Scania, together with services that guarantee customers high uptime and low operating cost. We will concentrate on broadening our existing offering of trucks to the mining industry but also in other areas of the construction segment, as well as trucks for heavy special-purpose road transport. In the bus segment we see potential for sales of buses and coaches, both for city traffic and long-distance intercity services.”
At present Volkswagen owns a majority 70.95 % in Scania. Engines are also set to be sold to other vehicle manufactures in India to broaden the company’s horizons. With such a huge investment being placed it is quite clear to see that Scania are hoping to take advantage of the demand for heavy duty vehicles in India. With the backing of Volkswagen anything is possible.