Scania unveils Citywide bus, India growth plans

04 February 2016

Swedish commercial vehicle and engine manufacturer Scania today said that it would double the production capacity at its Karnataka plant in five years to meet sales expectations. Besides, the company is aiming to increase market share in the luxury segment and is looking at the development of infrastructure as a "positive integers" for volume growth in the country.

"We now have a production capacity of 2,500 trucks and 1,000 buses and that is to be doubled in 2020. That is our long-term strategy for the Indian market," said Scania India business unit managing director Mikael Benje.

He further said, "We have potential to take some more market share. That's why we are ramping up our production." However, Benje declined to share the Scania's investment on expansion of its Achatnahalli, Karnataka plant.

"We would invest continuously. Whatever would be necessary for the market, we would invest to meet the supply and demand," he said. In next five years, Scania will also expand its employee pool to 1,200 people at this facility. Till now, the company has invested Rs300 crore.

Scania, which today unveiled its Citywide bus, which can run on fossil fuels as well as on renewable fuels like bio-ethanol, bio-diesel, and bio-methane, is also sensing a good opportunity in the government's plan to develop smart cities by providing green transport solutions.

"We are going to have collaboration with the state governments. We would talk as how they can have right infrastructure with different right kind of fuels. Different cities have different demands," Benje said. The company, which has 35 premium market share in the premium segment is using 70 to 80 per cent of locally sourced parts.

Over implementation of BS-VI emission norms by the government in next four years, he said, "We are quite comfortable with that. We have seen similar development in Singapore and Hong Kong by jumping Euro-IV to Euro-VI. We have products for that."

When asked whether Scania is also exploring the export potentials from here, Benje said that the domestic market is its first priority; however, it would look at that aspect.

"We are looking into that aspect. We have not established it yet since we are trying to focus on the Indian market first, which is our priority. In future, if we see a place for us, then we will," he said.