Swedish truck maker Scania is preparing a fresh push in India. Its focus is on expanding its presence in mining and construction before gradually entering on-road haulage.
Under the leadership of Silvio Munhoz, a 43-year industry veteran who came out of retirement to spearhead the brand’s revival, the company is treating its India operations as a near start-up, but with global backing and compliance discipline from the Volkswagen Group.
Munhoz, who previously led Scania operations in Brazil and Chile, is bringing to India the company’s “solution sales” concept—offering customers not just vehicles, but a bundled package of financing, leasing, driver training, uptime guarantees, and resale support.
Globally, Scania enjoys about 15–20% market share in the segments it caters to, such as mining, large-dimensional cargo and tractor-trailers. Munhoz said the long-term aim is to replicate this positioning in India.
“Our rightful place in India is not just to be present, but to be competitive in the segments where we are strong globally,” he said.
Resetting Strategy After Past Challenges
Scania, which had faced compliance issues and shut down its bus plant, now sees India as one of the five global geopolitical regions that will drive the world economy. Munoz says the company is “fully compliant, fully reset, and ready to grow.”
The initial focus is narrow but deliberate: coal, iron ore, and limestone mining, as well as heavy construction—segments that match Scania’s global strengths. The company plans to build a stronger dealer network from this base and expand into on-road haulage within 3–4 years.
Super Series Launch: Global Products, Local Ambitions
On Tuesday, the company launched its Super Series range in India, a globally homologated product line featuring a new engine, gearbox, and chassis. Positioned as one of the most fuel-efficient diesel powertrains available, the series is also ready for 20% biodiesel (going up to 100%), gas (CNG, LNG, biogas), and future electrification.
While Scania acknowledges the Indian government’s strong tilt toward alternative fuels and zero-emission technologies, Munhoz argues that efficiency improvements in diesel engines can still deliver significant CO₂ savings, especially in heavy-duty applications where electrification remains challenging.
Building the Ecosystem, Not Just Selling Trucks
Scania’s pitch to Indian customers goes beyond trucks. The company is rolling out driver coaching via telematics, uptime guarantees, and fleet financing solutions through banking partners. It also explores customer workshop management, where Scania takes over and runs the service infrastructure for large operators.
“We are not selling a truck anymore; we are selling a complete solution,” Munhoz says, emphasizing that this approach has been proven in Latin America and Europe.
Scania’s Narasapura plant near Bengaluru has an annual capacity of 2,000 units, but current utilization is far below that. Localization levels are also low (below 30%), though Scania intends to increase this gradually, leveraging learnings from its new China plant.
“Once we stabilize production and supply chains in China by 2026, we will bring that experience to India and ramp up localization,” Munhoz said. Long-term, this could include local assembly of gearboxes, axles, and engines, requiring significant fresh investments – but all that will depend on volume expansion.
From Mining to Coaches
While Scania is not reviving its bus body operations, it sees potential in supplying luxury coach chassis, given India’s infrastructure push and the rising demand for premium sleeper buses as air travel capacity lags demand.
Exports to neighboring South Asian markets such as Bangladesh, Nepal, and Sri Lanka are also on the radar, though India remains the immediate priority. So, Scania’s strategy for the short term (0–2 years) is to consolidate in mining and construction and strengthen its dealer/service presence. In the mid-term (3–5 years), it will enter select on-road haulage niches, grow localization, and explore exports.
If things go as planned, then in the long term (5+ years), it may consider capacity expansion, deeper localization, and possible engineering and R&D from India.
Munhoz says Scania India is “playing a strong game in a very competitive market” but is determined to claim its rightful share.