Scania to ramp up sourcing

Leading Swedish truckmaker Scania AB, which had tied up with Larsen & Toubro (L&T) recently, is planning to progressively increase sourcing of automotive components from India. The company has already initiated efforts in this regard.

"We see India as an increasingly interesting market for sourcing of components. We have begun sourcing machinery parts for engines from India," said Hans-Ake Danielsson, press manager, Scania AB. The company's choice of suppliers in India include Autotech, he said.

Scania had recently tied up with engineering and construction major L&T for distributing the latter's trucks in the country. These 300-500 horsepower trucks will cater to the mining and construction sectors.

"The entire sales, marketing, maintenance and support will be carried out by L&T with Scania providing the necessary training and support," said S Raghavan, vice-president, construction equipment, L&T.

"If the Indian market does well and develops to a certain critical mass, we might think of setting up an assembly base in the future," said Danielsson. 

Scania has wholly controlled production bases in countries such as Sweden, the Netherlands, France, Brazil and Argentia.

L&T will be ready to sell Scania trucks by January 2007 after obtaining the homologation certificate, a necessary regulatory approval from Automative Research Association of India (ARAI).

Scania, with a turnover of $8.8 billion, is a leader in the production of trucks with capacities exceeding 16 tonne, heavy-duty buses and engines for mining, power generation and marine applications.

Currently, about one million Scania vehicles are in operation in 100 countries in Europe, Latin America, Asia, Africa and Australia.

Leading global truck players such as Man and DaimlerChrysler announced their plans for the Indian market. While DaimlerChrysler will be importing its Actros trucks into the country, Man has formed a joint venture with Force Motors for making trucks here.

Tata Motors has introduced its Novus range of trucks. Bhuwalka-promoted Asia Motor Works has also forayed into high tonnage trucks.

Volvo India, which kicked off operations in 2001, sold 600 trucks in the country in 2005.