1 Year agoIn 2013, Scania India started its operations in India with a plant in Bengaluru. Scania expects the demand to grow up to 300,000 in the upcoming years.
Overview of the Company
Scania is a Sweden-based automotive industry giant which was founded as Vabis in 1891 and as Maskinfabriks-aktiebolaget Scania in 1900. Both companies were merged in 1911 to form Scania with its headquarter at Södertälje, Stockholm County.
Since then, the company has rapidly expanded. It has manufacturing plants in Russia, India, France, Sweden, Argentina, Brazil and Poland. The company also operates several assembly plants across ten Asian, European and African countries.
In 2013, Scania India started its operations in India with a plant in Bengaluru. The facility can produce 2,500 trucks and 1000 buses annually. The company is world’s leading manufacturer of commercial vehicles. Scania’s heavy trucks, buses and diesel engines are known for its quality and performance. The Sweden-based Corporation aims to make India an export hub as their product range grows stronger in India.
In 2015, the company had around 44,000 employees. Around 18,400 employees are engaged in sales and services in more than 100 countries across the globe while 3,500 employees work for the research and development.
Significance of Make in India
On being asked about the manufacturing in India, Anders Grundstromer, Managing Director, Scania India said,” In India, you can find skilled labour, land and run a world class operations. We can also run a company which is 100% owned by Scania. We can produce world class products in world class factories in India.”
Vision for the future
According to Grundstromer, India is a very large market for heavy commercial vehicles such as trucks and buses. The company estimates that the demand for heavy commercial vehicles was around 20000 to 30000 in India last year.
Scania expects the demand to grow up to 300,000 in the upcoming years. The company also aims to create products for premium vehicle segments in India which will be manufactured in the country and distributed by Indian suppliers.
Apart from Scania, many other automobile manufacturers such as Volvo, JCB also plan to convert India into a manufacturing hub as a result of Make in India push. India’s proximity to the major world markets is also an advantage for automobile manufacturers in terms of logistical costs.