Scania Plans to Increase its Indian Presence

Scania, a leading manufacturer of buses and trucks as well as marine and industrial engines are now planning to begin investment in the Indian auto market. They plan on producing long distance coaches, city buses and trucks as well as marine and industrial engines under the newly formed Scania Commercial Vehicles India division.

The Executive VP of the company, in charge of marketing and sales, Martin Lundstedt, said that there is growing demand in the market today for performance and quality engines and vehicles which their company provides. By the next five years, they intend to have a yearly sale of around 1,500 engines, 1,000 buses and 2,000 trucks. some of the major factors behind the company’s decision to strengthen their presence in India is the growth of the export industry, expansion of logistic systems and motorways and consistent economic growth.

SCVI have already begun establishing a facility in India for production of parts, bodywork as well as fitting out complete vehicles. The Managing Director of the company, Henrik Fagrenius, said that by having this ready is quite fundamental for increasing the sales of their engines and vehicles. By later 2011, Scania will be providing a limited number of trucks and buses for testing by chosen Indian customers in more segments.

Fagrenius said that there is potential of offering their trucks for use in the industry of mining, within different areas of the construction market and heavy trucks for special function road transport. Meanwhile in the bus market, they see potential in sales of coaches and buses for use in both intercity long haul traffic and city traffic.

HD mining tippers from Scania were first introduced in India in 2007 in collaboration with L&T. The Indian co. managed to successfully establish the Scania Company’s HD construction trucks for use in the mining field. They currently operate around 10 service workshops of Scania in different mining sites of India.

Fagrenius said that L&T will still play a significant role in their service and sales in the market of construction equipments in India. Their presence in India will help strengthen the position of L&T, as their customers will be able to benefit by the wider range of models available now, along with higher availability of service and shorter periods of delivery.

Lundstedt concluded that in the longer run, the Indian market will be important to their company. They are currently taking an important step in this market and are looking forward to developing and growing the business along with their partner L&T.

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