Sweden’s Scania CV Dedicated to Indian Market, Says Novotny, Auto Information, DFL
Mumbai: Scania Industrial Automobiles is dedicated to India and needs to take part in its development story, the Swedish truck maker’s new managing director for India, Petr Novotny, advised ET.
The premium truck model, owned by the Volkswagen Group, lately appointment Novotny as MD, quashing hypothesis that the corporate would comply with MAN Vans, one other division of Volkswagen, in exiting India. MAN stopped operations final 12 months.
“As we begin our new journey, our focus is on a sustainable profitable growth, and that means we will not run after market share gain,” Novotny mentioned. “Our focus will be on value selling to create a long-term partnership with our customers.”
Scania, which entered India with an area manufacturing base in 2013, suffered a setback within the nation as its investments within the bus enterprise did not take off. Final 12 months, it wound up its bus bodybuilding plant attributable to poor demand for its premium buses. Novotny ascribed it to miscalculation of demand, however mentioned the corporate’s dedication to the mining truck section stays very sturdy.
The corporate, nevertheless, sees high-end off-road mining and on-road vans to be its mainstay within the years to come back. Folks within the know mentioned Scania’s has chalked out a five-year plan which focuses on utilising its capability (1,200 models in a single shift/2,400 in two shifts) and reaching breakeven for its funding in India.
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Novtony didn’t give any numbers or timeframe however mentioned his purpose could be utilise capability on the earliest and have a look at constructing a sustainable enterprise operation. Although the bus physique plant has been shut, the corporate has retained the instruments of the bus physique plant to recreate the manufacturing facility as soon as the premium bus market bounces again.
Scania offered about 300 vans priced over ₹2 crore within the Indian high-end industrial automobiles section, which sees gross sales of 1,200-1,500 models yearly. Scania doesn’t share its gross sales figures with business physique Society of Indian Car Producers (SIAM).
Other than revamping its mining truck section with new merchandise, Novotny mentioned a variety of on-road truck functions are being studied to take part within the India infrastructure development story.
Novotny, who has spent vital time in Africa, mentioned that by getting the basics in place, the corporate’s operations within the area had grown many folds by way of quantity and revenue. In India, the corporate could comply with an identical path, therefore it’s reigniting its India technique.
Earlier than becoming a member of Scania, Novotny had labored manufacturers like Philip Morris Worldwide, Coca-Cola and Deloitte in numerous management capacities.
Being a fringe participant, Scania is promising an assured buyback to its potential clients to construct confidence in them. Novotny mentioned the corporate’s job simply doesn’t finish with promoting a truck, Scania’s executives will work very intently with their shoppers to ship an optimum driving cycle for its consumers.