Swedish commercial vehicle and engine manufacturer Scania today said it will double the production capacity at its Karnataka-based plant to meet sales expectations.
Besides, the company is aiming to increase market share in the luxury segment and is looking at the development of infrastructure as “positive integers” for volume growth here.
“We now have a production capacity of 2,500 trucks and 1,000 buses and that is to be doubled by 2020. That is our long-term strategy for the Indian market,” said Scania India Business Unit Managing Director, Mikael Benje.
He added: “We have the potential to account for a bigger market share. That’s why we are ramping up production.”
However, Benje declined to share Scania’s investment on the expansion of its Achatnahalli, Karnataka plant.
In the next five years, Scania would also expand its employee pool to 1,200 people at this facility.
The company has invested Rs 300 crore in the facility so far.
Scania today unveiled its Citywide bus, which can run on fossil fuels as well as on renewable fuels such as bio-ethanol, bio-diesel and bio-methane. The company sees a good opportunity in the government’s plan to develop smart cities by providing green transport solutions.
“We are going to collaborate with the state governments. Different cities have different demands,” Benje said.
The company, which has a 35 per cent market share in the premium segment, uses 70 to 80 per cent of locally sourced parts.
On the implementation of BS-VI emission norms by the government in the next four years, he said: “We are quite comfortable with that.”
“We have seen similar development in Singapore and Hong Kong by jumping from Euro-IV to Euro-VI. We have products for that,” Benje said.
On being asked whether Scania is also exploring export potential from here, Benje said the domestic market is its first priority. However, it would also look at that aspect.
“We are looking into that aspect. We have not established it yet since we are trying to focus on the Indian market first, which is our priority. In future, if we see a place for us, then we will,” he said.