BENGALURU: Premium commercial vehicle ( CV) maker Scania will formally inaugurate its truck and bus facility in Narasapura (outskirts of Bengaluru) on Tuesday.
The new plant will have a capacity to make 1,000 units per year and will employ 300 people in the first year, the company said. Union Minister for Surface transport Nitin Gadkari will inaugurate the new facility. The company has invested around `300 crore in the Narasapura plant. The unit will also serve as an export hub for regions like Asia, West Asia and Africa, the company said.
CV sales in India has seen positive movement in the last few months after nearly two years of uncertainty. Medium & Heavy Commercial Vehicles (M&HCVs) grew by 15.09 percent and Light Commercial Vehicles declined by (-) 11.75 percent from April-February 2015.
“Scania’s bus manufacturing facility in Narasapura, which we inaugurate today, is yet another milestone in our strategic plans for India. The vision for Narasapura is clear – it is a world class facility serving both the Indian market and becoming a hub for exports to other markets in Asia,” Martin Lundstedt, President and CEO, Scania CV said in a statement.
The company inaugurated its truck manufacturing facility in October 2013. The current yearly capacity of the plant is 2,500 trucks and 1,000 buses. “Over the next five years, Scania aims to double its capacity by 2,500 units of buses and 5,000 units of trucks and recruit about 800 employees by the end of 2017,” he said.