Scania AB boosts its presence in India

Scania, part of the VW Group, has announced that it is now initiating an investment in sales in additional segments of the Indian market. The investment covers trucks, city buses and long distance coaches, and also industrial and marine engines. A new company has been formed: Scania Commercial Vehicles India. “There is a growing 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 in charge of Scania’s sales and marketing. Continued good economic growth, export industry growth, and the expansion of motorways and logistic systems are factors behind Scania’s decision to strengthen its presence in the Indian market. Scania Commercial Vehicles India has commenced the task of establishing a plant for bodywork and fitting out of complete vehicles as well as a parts depot in the country. “Having this in place is a fundamental requirement for boosting of sales of our vehicles and engines,” says Henrik Fagrenius, Managing Director of the company. During the second half of 2011, Scania will provide a small number of buses and trucks for test operations by selected Indian customers in additional segments. “The potential exists to broaden our existing offer of trucks to the mining industry but also within other areas in the construction segment, as well as trucks for heavy special-purpose road transport. Within the bus segment we see a potential for sales of buses and coaches both for city traffic and long-haul intercity traffic,” says Fagrenius. Scania heavy duty mining tippers were introduced in the Indian market in 2007 together with Larsen & Toubro (L&T). The Indian company has successfully established Scania’s heavy construction trucks in the mining industry, and currently operates about ten Scania service workshops in various mining sites in the country. “L&T will continue to play an important role in relation to Scania’s sales and service in the Indian construction equipment market. Our own presence in the country will also strengthen L&T’s position, since the company’s Scania customers will benefit from a larger range of models, shorter delivery times and higher service availability,” says Mr Fagrenius. “In the longer term, India will be a key market for Scania. We are now taking a new important step into the market, and look forward to growing and developing the business together with our partner L&T,” concludes Lundstedt.