Scania looks at India for global sourcing
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.