Scania to make Karnataka bus plant its Asia export hub

Scania Commercial Vehicles India today opened its bus manufacturing facility in Narasapura, near Bangalore. The bus plant, which is located near the truck-making facility, will be officially inaugurated by the minister of Road Transport and Highways of India, Nitin Gadkari, tomorrow. The plant currently has a manufacturing capacity of about 1,000 buses per annum and will employ 300 people in its first year.

Scania's Metrolink luxury inter-city buses are already plying in the country since February 2013, brought in as completely built units. Local manufacture will now help reduce the cost. The company is launching buses with 100 percent localization in body material and 70 percent in overall bus value; the chassis has 30 percent local content. The company has around 50-60 vendors to supply components for the buses.

The company has received big orders from state transport undertakings like KSRTC and MSRTC and expects to sell over 300 buses this year in the domestic market. Scania CV India will also enter the intra-city or city bus segment.

In the luxury bus segment, Scania is targeting the well-entrenched Volvo and the more recent entrant, Mercedes-Benz India.   

The bus plant will also serve as an export hub for regions such as Asia, Middle East and Africa. Over the next five years, Scania aims to double its India production capacity by 2,500 units of buses and 5,000 units of trucks and recruit about 800 employees by the end of 2017.

Martin Lundstedt, president and CEO, Scania CV, Anders Grundströmer, managing director, Scania India and senior VP, Scania Group and Klas Dahlberg, senior VP (Buses & Coaches), Scania Group, commemorated the announcement of the manufacturing facility.

Martin Lundstedt, president and CEO, Scania CV, said: “Scania’s bus manufacturing facility in Narasapura is yet another milestone in our strategic plans for India. The vision for Narasapura is clear – it is a world-class facility serving both the Indian market and becoming a hub for exports to other markets in Asia. Scania remains committed to bringing global technology and manufacturing practices to the countries in which it operates. The goal is to draw on local talent and competence and combine it with global experience. We see Naraspura as an important addition to our global operations and are committed to making it a success.”

In October 2013, Scania inaugurated its truck plant in Narasapura. The company has collectively invested around Rs 300 crore in its truck and bus manufacturing facility. The current yearly capacity of the manufacturing plant is 2,500 trucks and 1,000 buses.

Anders Grundströmer, MD, Scania India and senior VP, Scania Group, said: “Scania has been the frontrunner in promoting sustainable transport solutions globally. We entered India with a vision to provide sustainable transport solutions to the country and formulated various channels for promoting it. The establishment of our bus manufacturing facility plays a major role in realising this vision for India. The facility will accommodate a state-of-the-art bio-gas unit, which will help in producing alternative fuels locally. With this bus plant we are looking at locally assembling buses and coaches in India, and stay true to the vision of Make in India.”

Klas Dahlberg, senior VP (Buses & Coaches), Scania Group, said: “The all-new bus manufacturing facility will be used to its full capacity and we are looking at exporting the buses and coaches to the neighboring countries of India. India’s geographical position will be an advantage to Scania in connecting with Far East Asian countries, Africa and Middle Eastern countries.”