The Hindu Business Line : Scania looking to boost presence in India

New Delhi, Feb. 4 Swedish automotive major Scania has set its eyes on the burgeoning domestic commercial vehicle industry, with plans to strengthen its presence here.

Scania, a leading bus and truck manufacturer with operations in 100 countries and around 32,000 employees globally, is evaluating the market here for manufacturing its commercial vehicles locally. It is also looking to set up an international purchasing office in the country.

“ India will be one of the biggest transport markets in the world. We are looking at manufacturing, but it will be on our own and not through any joint venture partner,” said Mr Mikael Kyander, Director Sales & Services Overseas and Special Market Projects, at the sidelines of a CII-ITC seminar with the Swedish Trade Council.

Mr Kyander was referring to the recent joint ventures inked between Volvo and Eicher, and Hero with Daimler in the domestic commercial vehicle industry.

In India, Scania already has an agreement with Larsen & Toubro to distribute and market its tipper trucks that are primarily used for mining and construction equipment. Mr Kyander said that the first consignment will hit the Indian market by next month with an initial order book of 100 trucks.

“We are not even present in the Indian market. Yet we have already got an order for 100 trucks. But we had showcased our product at the Excon exhibition in Bangalore in November 2007, ” he said.

Scania has heavy trucks in the range of 16 tonnes and above. It is also into manufacturing of buses, both for rough operations as well as in the premium category where it competes with Volvo.

Mr Kyander also said that the company was looking at increasing its sourcing activities in India. “ Scania is already sourcing components for its trucks and buses from India. We have our purchasing team that is regularly visiting and finding suppliers here,” he stated, adding that the company could consider setting up an international purchasing office provided it could find a suitable vendor base.

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