Scania Commercial Vehicles India is eyeing substantial sales in the mining sector.

“The company is gearing up to face the mining sector demand. Now, six leases have been auctioned and another six are in the pipeline. This means 12 mining leases will be in action this year. This also means that the demand for mining vehicles is exploding,” Anders Grundstromer, Managing Director, Scania Commercial Vehicles India, told BusinessLine .

The company, in 2010, had sold 150 vehicles. Last year (2014) of the 1,200 vehicle market size, Scania sold 400 vehicles.

“This year (2015) the market size is expected to be around 2,000 vehicles. We have set a target to sell 700-800 vehicles. Along with mining leases, the mining sector is also getting a new mining regulation act and we see lot of activities in coal, bauxite and iron ore operations,” said Grundstromer.

Martin Lundstedt, President and CEO, Scania Commercial Vehicles India, announced today the inauguration of its ₹300 crore bus manufacturing facility at Narsapura, near Bengaluru.

The facility has a capacity of rolling out 1,000 buses a year and has employed 300 people. “About 92 per cent of the employees are locals (within Karnataka) and nine per cent from the Kolar district. We have given three to six months training after hiring them,” said Lundstedt.

The current yearly capacity of the manufacturing plant is 2,500 trucks and 1,000 buses. “The bus plant will also serve as an export hub for Asia, West Asia and Africa over the next five years. Scania aims to double its production capacity by 2,500 units of buses and 5,000 units of trucks and recruit about 800 employees by the end of 2017,” Lundstedt.

Sustainable transport Grundstromer said: “We entered India with a vision to provide sustainable transport solution. As a first step towards realising this, we handed over the first green bus in August last year to Nagpur Municipal Corporation (NMC).”

“Over the last six months, there has been increasing interest by several cities. Nagpur had been declared the first city for the adoption and indigenisation of green transport solutions in India, by the Union Ministry of Transport and Shipping,” he added.

comment COMMENT NOW