Scania, a Swedish commercial vehicle maker, announced on Tuesday that it is planning to invest a sum of Rs 150 crore in the Indian auto market, to establish a new manufacturing facility in the Indian market over the period of next 12 months.
The new manufacturing plant will be set-up in Bangalore, from where company plans to roll-out 1,000 inter-city buses and 2,000 heavy haulage trucks, over the period of next five years. The first truck form the company’s proposed plant in Narasapura Industrial Area (Bangalore), will be rolled out in the first quarter of next year.
The company had marked its debut in the Indian market in year 2007, in partnership with Larsen & Toubro (L&T). However, it has now formed a new firm - Scania Commercial Vehicles India – in the country.
While announcing the company’s future plans, firm’s Managing Director, Mr. Henrik Fagrenius said, "This investment furthers Scania's commitment to the Indian market and this is the right moment for us. This unit will enable us to shorten our lead times and enhance service levels to our customers." He added that Scania foresees a number of benefits with establishing the new plant and this will also go a long way in sourcing of components locally from India.
