Scania plans assembly unit at Bangalore

Scania of Sweden has decided to set up an assembly plant in Bangalore to bring in trucks, city and inter-city buses. The company had entered India some years ago with in a marketing tie-up with Larsen & Toubro to cater to the mining sector. Scania’s Indian arm will be called Scania Commercial Vehicles India.

“There is a demand for vehicles and engines of the quality and performance that Scania stands for. Within the next five years, we expect to be able to achieve annual sales of almost 2,000 trucks, 1,000 buses and 1,500 engines,” says Martin Lundstedt, executive vice president, sales and marketing. As of now, Scania has not decided if L&T will continue to be the distributor for the new products it will launch in India. Total CV sales in India for April 2011 were over 50,000 units, according to SIAM.