Scania AB plans to invest about SEK 200 million ($29.6mln) in an industrial facility in Bangalore during the coming year.
The company will initially assemble truck and bus chassis at the plant to be located in the southern city of Bangalore, a statement said Tuesday. It will also make bus bodies there later.
The Scania Regional Product Centre, India will also be the center of the company’s commercial operations in the country. Scania’s ambition is to sell about 2,000 trucks, 1,000 buses and 1,500 engines per year in the Indian market within the next five years.
With the commercial vehicles segment likely to register 8%-10% volume growth this year, the outlook is very promising, Henrik Fagrenius, managing director of Scania’s Indian commercial vehicle unit, said in the statement.
“The manufacturing of complete trucks locally in the country means that we can cut lead times further and broaden our product offering,” Fagrenius said in a statement on Tuesday.
Once fully operational, the plant will employ up to 800 people over the next five years.
The company also announced that it will sell engines to vehicle manufacturers in India.
In 2011, Scania established the company Scania Commercial Vehicles India in order to boost its presence through sales to additional segments of the Indian commercial vehicle market.