Scania has formed a new Indian unit to look at increasing sales of trucks, city buses and long distance coaches in the country as well as industrial and marine engines.

Martin Lundstedt, in charge of sales and marketing, said Scania Commercial Vehicles India has already started the task of establishing a plant for bodywork and fitting out of complete vehicles as well as a parts depot in the country.

He said: “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.”

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, he added.

Henrik Fagrenius, managing director of the new company said that during the second half of this year Scania will provide a small number of buses and trucks for test operations by selected Indian customers.

He added: “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.”

Scania heavy duty mining tippers were introduced in India 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 10 service workshops in the country.