Sca­nia looks at In­dia for global sourc­ing

Commercial Vehicle - - NEWS -

Af­ter in­vest­ing Rs.400 crore in In­dia, Sca­nia, af­ter build­ing a man­u­fac­tur­ing plant at Ban­ga­lore for trucks and buses, is look­ing at In­dia as a global sourc­ing hub for com­po­nents. The Swedish CV maker is said to em­ploy a two pronged strat­egy where it will con­duct com­po­nents sourc­ing for its global op­er­a­tions, and in­crease the local con­tent on the CVs it makes in In­dia. In­dus­try sources claimed that Sca­nia will soon ap­ply thrust on prime movers. This would be in-line with the GST regime, which is ex­pected to make long-haul, higher-ton­nage trucks favourable. To com­pete with home­grown play­ers, and other multi-na­tional play­ers, that are look­ing at the emerg­ing mid-pre­mium mar­ket po­si­tions, men­tioned an in­dus­try ex­pert, it would serve Sca­nia to in­vest in local con­tent. Not only would this help to re­spond quickly to mar­ket changes, it will also help the pre­mium CV maker to make in­roads into the more pop­u­lous, mass mar­ket seg­ments that are prof­itable though not as much as the pre­mium seg­ments, and seek a bet­ter bal­ance be­tween vol­ume and earnings. he said. The prime movers and tip­pers than Sca­nia cur­rently of­fers in In­dia are pre­mium, and with con­sid­er­ably higher ac­qui­si­tion cost than mid-pre­mium or mass vol­ume of­fer­ings. Claimed an in­dus­try source that the team at Sca­nia is analysing if the same strat­egy, which lead to Sca­nia buses ac­quir­ing a local con­tent of up to 90 per cent, work in the case of trucks.

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