Scania to Make India its Global Export Hub

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Scania planning full utilisation of its two manufacturing plant in India; will launch big trailers

Swedish commercial vehicle manufacturer Scania is planning to make India its global export hub. The CV maker has two manufacturing plants in the country with Rs. 400 crore invested in those factories. To make the country its global export hub, Scania aims to fully utilize the two plants and it also plans to build a local supplier base.

The auto major stepped into the Indian market in 2013, but yet to grab a good share in the country’s premium CV market. Alongside making the country hub for its global operations, Scania targets to expand its network and business in the domestic market as well. For that, it will roll out more premium truck models along with bigger trailers in the Indian market.

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Currently, Indian CV market is dominated by auto majors like Tata Motors, Mahindra, Ashok Leyland etc. In the premium truck and bus segment, Mercedes and Volvo have strong presence. With increased operations Scania is aiming to compete these brands here. Scania India Operations’ president Stefan Palskog says that the automaker will enhance the localisation in its product manufacturing gradually.

Currently, Scania brings the products as CKD and the trucks have 12% – 15% localisation in manufacturing. While the Scania trucks come with below 20% localisation in the country, Scania buses have achieved 90% localisation here. With the increased localisation in the truck assembling, the products will see significantly reduced pricing that will help the brand to take on rivals like Volvo and Mercedes.

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Presently, it has presence in the 16T to 70T premium CV segment in the country and it also has the heaviest trucks in the market in 50T to 70T segment. The company is also planning to increase its local supplier base in the domestic market. Presently, it has around 100 suppliers and the brand aims to add few more to the list.

Scania Truck Gallery

Source: ET Auto