Scania boosts its presence in India

Scania boosts its presence in India

Scania is now initiating an investment in sales in additional segments
of the Indian market. The investment covers trucks, city buses and long
distance coaches, and also industrial and marine engines. A new company
has been formed: Scania Commercial Vehicles India.

“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,” says Martin Lundstedt, Executive Vice
President in charge of Scania's sales and marketing.

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.

Scania Commercial Vehicles India has commenced the task of establishing
a plant for bodywork and fitting out of complete vehicles as well as a
parts depot in the country.

“Having this in place is a fundamental requirement for boosting of sales
of our vehicles and engines,” says Henrik Fagrenius, Managing Director
of the company.

During the second half of 2011, Scania will provide a small number of
buses and trucks for test operations by selected Indian customers in
additional segments.“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,” says
Mr Fagrenius.

Scania heavy duty mining tippers were introduced in the Indian 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 about ten Scania service
workshops in various mining sites in the country. 

“L&T will continue to play an important role in relation to Scania's
sales and service in the Indian construction equipment market. Our own
presence in the country will also strengthen L&T's position, since the
company's Scania customers will benefit from a larger range of models,
shorter delivery times and higher service availability,” says Mr
Fagrenius.

“In the longer term, India will be a key market for Scania. We are now
taking a new important step into the market, and look forward to growing
and developing the business together with our partner L&T,” concludes Mr
Lundstedt.

For further information, please contact:
Hans-Åke Danielsson, Press Manager, Scania
Tel. +46 70 346 88 11