Scania has started Indian bus and coach production in the state of Karnataka. It has so far spent about SEK400m (US$46.5m) in Narasapura where the company has been assembling trucks since 2013.
“The inauguration of this bus production facility is an important milestone for our Indian operations. The buses and coaches produced here will also be exported to other regional markets in the future and even to the rest of the world in the longer term,” said Scania’s president and CEO Martin Lundstedt.
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Scania’s industrial operations in Narasapura, 40km east of Bangalore, already include final assembly of truck and bus chassis as well as bodybuilding and fitting out of complete vehicles. The production of fully-built long-distance coaches is already running. City bus production will begin shortly and the first deliveries are planned by year end. The head office of Scania’s Indian subsidiary is also located in Narasapura, as well as a service workshop and a central parts warehouse.
The production facility is currently designed for 2,500 trucks and 1,000 buses per year and has 600 employees. Within the next five years, Scania expects to double capacity and to recruit a further 200 employees by the end of 2017.
Scania has been in India since 2007, when cooperation was initiated with Larsen & Toubro (L&T). L&T has successfully established Scania’s trucks and services and has developed a close partnership with customers in the mining industry.
During 2011, Scania formed the company Scania Commercial Vehicles India with the aim of boosting its presence through sales to additional market segments. The establishment of the operations in Narasapura began more than two years ago.
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