Anticipating a surge in demand for its buses and trucks in India, Swedish commercial vehicle major Scania has hinted at setting up of new plants at the existing site of Narasapura near Bengaluru.
The company already has a truck plant and recently inaugurated a bus plant with an annual capacity of 2,500 trucks and 1,000 buses on a two shift-basis.
Speaking to the FE, Anders Grundstromer, MD, Scania Commercial Vehicles India, and senior vice-president of Scania Group, said: “Based on the strong revival of the economy, coupled with our ambition to make India a destination for exports to neighbouring countries, the existing facilities (both bus and truck) at Narasapura are not sufficient to meet our 2020 target. We would look at setting up new plants at the existing site near Bengaluru as we have a huge traction of land.”
He added: “We expect to sell 800 trucks in 2015 against 150 in 2014. We hope to sell more than 300 luxury buses and 55 city buses (to Nagpur Municipal Corporation) and 800 buses in 2016.”
Scania’s domestic target for 2020 is to sell 5,000 trucks and 2,500 buses.
According to Grundstromer, in addition to domestic sales, Scania would start exporting both trucks and buses in a big way to neighbouring countries. “We have already begun exporting of trucks to neighbouring countries (Saarc) in a small way. By 2020, we want to export a similar number of buses and trucks as we planned to sell in India,” said Anders.
To a question, he said: “We have invested over Rs 300 crore so far on this facility. We may invest a bit more, depending on the market conditions.”
On a two-shfit basis, the existing facilities can produce 1,000 buses and 2,500 trucks annually.
Earlier, Martin Lundstedt, global president & CEO, Scania AB, said: “Our tier-I vendors are capable of supplying quality products to both domestic and international operations. But Scania needs to spruce up vendors in tier-II and tier-III cities, which would augur well for us for outsourcing components in a big way.”