Swedish truck and bus major Scania Commercial Vehicles (CV) has said that the truck assembly line at its first Indian facility in Narasapura near Bangalore will go into production this month. Scania is also likely to commence manufacturing buses at the facility from April next year, a top company executive said this week.
“The construction of the facility is now complete and trucks will start rolling out of this assembly line this month,” according to Scania Group Senior Vice-President and Scania CV India Managing Director Anders Grundstromer.
Scania, which began sales of its products in India in 2007 as CBUs (Completely Built Units), had invested Rs 250 crore in early 2012. The Sodertalje-based company intended to develop a new facility at Narasapura, Kolar district, Karnataka, to manufacture and sell its range in India.
“For the first time, we will be selling products localised in India for the Indian market,” Grundstromer told Deccan Herald, adding that the new facility boasts of an annual capacity of 3,500 units, which presently includes the R 500 6X4 puller, G 460 6X4 puller, G 410 6X2 tractor and the P 410 8X4 rigid truck.
The industrial operations will comprise final assembly of trucks, and building of complete coaches supported by body workshops. The head office of Scania’s Indian subsidiary, complete with a service workshop and central parts warehouse, will be housed at the same site.
Since 2007, the company has sold its trucks in India in the form of CBUs imported from Sweden in partnership with L&T.
“We have sold around 1,000 trucks in India till date, mostly to the mining sector, besides ODC (Over Dimensional Consignment) pullers,” he said, adding that a sizeable number of buses were also sold during the period. Scania has also set up dealerships in Mumbai, Kochi, Bangalore, Chennai and Hyderabad.
“Now with our localised products entering the market, we are targeting sales of 2,000 trucks and 1,000 buses annually in the next five years,” Grundstromer said, adding that the company wants to capture 20 per cent of the burgeoning premium bus and truck market in the country in the next five years.
Scania also expects to increase headcount at the facility to 800 in the near future, and invest in services such as mobile service vans. “Our premium products require expert care and timely service, and our mobile vans will be stationed between dealerships and will reach vehicles anywhere on call, depending on the need or urgency,” Grundstromer said, adding that the company will eventually appoint dealers in all major cities.
