Scania plans Indian bus market entry in 2010

Swedish commercial vehicle major Scania is planning to enter the Indian bus market in 2010. “We are now doing a feasibility study for launching our buses in the Indian market. The high-end segment is interesting for us, and we have a good product range to offer. We expect that sometime during the course of next year, we would’ve finalised our entry into India. India is a very important market, and we have to be there. However, we are not in a hurry at the moment”, said Mr. Martin Lindstedt, Executive Vice President, Frachise & Factory Sales, Scania.

Scania entered the Indian market in 2007 by launching tippers in partnership with L&T.; The cabin and chassis are currently imported as completely built units (CBUs) and tippers are being added locally. The company has sold over 500 units in India till date.

Scania is now looking at the possibility of introducing on-road vehicles and setting up an assembly facility in India both for its truck and bus projects. “We are doing the feasibility study in close co-operation with L&T.; Our partners will also need to decide whether it is their core competence”, he said.

As part of the feasibility study, Scania has imported a few bus chassis and has built bodies with a few bus body builders. These are exported to nearby markets like Bangladesh where Scania has secured orders for buses.

Globally Scania has very strong relationship with Irizar. In India, Irizar is already present with its JV with Ashok Leyland and the TVS Group. Does this offer an opportunity for Scania? “India with its fast development is an important market, and we will definitely be there in India at the right time”, Mr. Lindstedt added.