Scania inaugurates first Asian manufacturing plant in Bangalore

Bangalore, October 29, 2013: Global truck and bus manufacturer Scania has invested Rs 250 crore in its first maufacturing plant in Narasapura, near Bangalore. The plant has a capacity to produce 2,500 heavy haulage trucks. The bus plant, with an annual capacity of 1,000 units will be operational by May 2014.

Currently the localisation is 18 percent for trucks, which the company plans to increase to 27 percent. The bus bodies will be 100 percent localised. Scania will also employ over 800 people at this facility within five years.

The facility will serve as company’s head office and centre for all commercial operations across the country. The operations will consist of final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse.

“Today marks the beginning of a new era for us in India, and it is our largest industrial footprint in Asia so far,” says Martin Lundstedt, president & CEO, Scania CV AB.

The Narasapura plant will house two manufacturing units – one for truck assembly and another for buses. Scania started production of trucks at the new facility in Narasapura during June and production trials have started for mining and off-road trucks. Production of on-road trucks will start soon.

The Narasapura plant will also turn into an export hub in the coming years. "I am sure this production line along with our total operating economy concept will create great quality vehicles and will be a strong witness of the Made-in-India label globally,” says Anders Grundströmer, managing director of Scania Commercial Vehicle India and senior vice-president of the Scania Group.

Scania sold around 200 trucks in India last year. It has bagged an order for 120 inter-city buses from fleet operator Siddhivinayak Logisitics. Eight buses a month will be delivered to the new customer, starting this December. They will be imported from Malaysia till Scania's India bus plant starts its operations. Scania has a partner in Malaysia to assemble buses. Since entering India through a partnership with Larsen & Toubro, Scania has sold around 1,000 trucks in the country.

SUMANTRA BAROOAH