An exclusive interview from MOTORINDIA
Scania is stepping up its presence in the Indian market in a big way. Following the launch of its range of on-road trucks few months ago, the global heavyweight marked its entry into the Indian bus market with its inter-city coaches specially designed for India which were unveiled at Busworld India held in Mumbai.
Mr. Anders Grundströmer, Managing Director, Scania Commercial Vehicles India Pvt. Ltd., and Senior Vice President, Scania Group, who had recently taken over as head of Scania’s Indian operations, talks to Motorindia about Scania’s foray into the Indian bus market and more.
Excerpts:
Question: As the new head of Scania’s India operations, what would your top three priorities be?
Answer: For me and for Scania, the long-term commitment to India means that we can bring about a distinct change in the way India views transportation. The top three priorities are to establish Scania as the preferred brand in the truck and bus industry in India; affirm the presence of Scania truck and bus operations so as to meet the growing demand of the Indian market; and provide sustainable transport solutions focused on Total Cost of Ownership (TCO).
There is also a need for sustainable transport systems and vehicles that run on non-fossil fuels. We are eager to provide the right transport solutions for India. We have already established our presence in the HCV market, and with the introduction of Scania buses, we will be reaching out to the public on a wider scope.
Q: Scania recently unveiled four trucks for the on-road segment. Following customer trials, how has the overall product feedback been?
A: We have had very good response on the on-road truck launch. The customer feedback after the first phase of trials has been very positive. They have cited lower fuel consumption and better turnaround as the unique edge of Scania in comparison with their current transport solutions. Coupled with a lower total cost of ownership, these are the prime reasons for customers to look at Scania vehicles.
Scania’s foray into the on-road haulage segment of the Indian market is completely customer focused, providing reliable, fuel-efficient transport solutions with a lower impact on the environment. The focus has been to cater to the needs of diversified and growing segments in India such as long haul container handling, steel, chemical, special bulk transportation, mining and over dimensional cargo transportation.
Q: With the launch at Busworld India, there is a lot of buzz about your new range of buses for India. Could you share some details about the products? Do you have a tie-up with any bus body builder or will the buses be fully-built ones?
A: The new plant that is coming up in Naraspura will serve as an assembly unit for trucks as well as buses. Body building of city buses and coaches and service workshops for trucks and buses will also be part of this facility. Scania takes the next step in India with the introduction of its buses and coaches, with full parts and service support via the Scania service network. Chassis for buses will be assembled from knocked-down kits and the bus body will be indigenized and assembled with a full focus on quality. We envisage around 2,000 heavy haulage trucks and 1,000 inter-city buses, coaches and city buses to be rolled out per year from this plant in due course.
The new Scania coach is purpose-designed for luxury inter-city or charter travel in India. The Scania coach range introduces a new level of performance, driveability and road handling in the Indian market, all based on renowned Scania virtues such as robust design, maximum passenger safety, leading fuel economy and a long and trouble-free service life. Offered in three models 12, 13.7 and 14.5 metre variants, the Scania bus is designed to stand out as a premium product. Scania will deliver fully built buses to Indian customers.
Q: With Volvo deeply entrenched in the bus market, how do you plan to penetrate into the market? Do you plan to enter the city-bus segment in the near future as well?
A: The segment of inter-city bus travel in India is shifting to safe, reliable and comfortable systems. We see a good opportunity for Scania to grow in this segment. We have fully understood the essential requirements of bus operators in India and the need to be focused on uptime with service and parts support across all key routes of operation and accident repair facility. We offer the customers solutions that are clearly in line with their requirements.
We are studying the market conditions and will weigh all our options before introducing new products. We see a good opportunity for introduction of city buses in India with the focus on development of urban bus transport system.
Q: In terms of product features, what could we expect from Scania buses with a competitive edge over similar other products?
A: It is with great pride that Scania would give the Indian bus transport industry the benefits of a new range of inter-city coaches, with a distinct Scania character, bristling with state-of-the-art technology. Scania has been at the forefront, developing new coach concepts and technologies during more than a century. It gives us great pleasure to now bring the world-renowned Scania buses and coaches to India. Our products are known for their outstanding fuel economy and high uptime, and ensuing low operating costs. The new Scania Coach is a premium product that is completely in line with the company mission to be a trusted partner for the transportation industry in India. The world-renowned Scania engines that power trucks, buses and other industrial machinery worldwide have exceptional qualities, delivering high torque from low revs, brisk acceleration and relaxed performance, combined with excellent fuel economy.
Q: Would your major targets be private fleet operators or State transport corporations?
A: We believe that both the Government and private fleet operators will bring about a distinct change in the transportation sector in the country. The State-run transport undertakings are important players in the Indian transport business. With the launch of these buses, Scania will now approach State transport undertakings as well as private fleet operators for introducing Scania buses in their fleets.
Q: For your on-road trucks, have you appointed any other dealer apart from the first one in Maharashtra? And, moving forward, would you continue working with L&T for the off-road segment?
A: We have added one more dealer in Chennai apart from the one already appointed in Mumbai. We are in the process of expanding the dealer network. L&T will continue to represent Scania in the mining and off-road segments with construction trucks.
Q: How will your latest offering in the construction and mining segment, the new P 410 series truck, help enhance your presence in the segment?
A: The P 410 will be the new product line up, both in the off-road and on-road segments. The Scania P 410 6×2 is a new prime mover concept in India which has been well received by customers with whom trials have been undertaken. Scania’s entry into the on-road haulage segment of the Indian market is completely customer focused, providing reliable, fuel-efficient transport solutions with a lower impact on the environment. It caters to the needs of diversified and growing segments in India such as long haul container handling, steel, chemical, special bulker transportation and over-dimensional cargo. The Scania prime mover models, P 360 4×2, P 410 6×2, G 460 6×4 and R 500 6×4, are available for segments of end usage application.
Q: You have developed Scania’s presence in various countries in the European market. How do you perceive the Indian market given its inherent challenges? What are your long-term market ambitions?
A: India is the sixth largest market for automobiles and commercial vehicles in the world, as well as the second largest market for buses and coaches. India, along with China, is gearing up to become a global manufacturing hub for buses and coaches, since both enjoy a high potential. Although the bus penetration at 0.7 per 1,000 is low in India as compared to other Asian countries, the policy framework being put in place by various authorities towards upgradation and standardization, besides passenger safety, promises tremendous scope in bus body aggregates and bus manufacturing.
Today, the bus industry faces various challenges related to environmental safety, driving, administration, engineering and delivering technologies. Scania, which has already established itself in the CV industry in the country, now looks at becoming a trusted transportation partner for people through buses and coaches too. We at Scania see a huge potential in India with the truck and bus operators constantly looking forward to further technological and service innovation, which in turn will enable them to achieve smoother operation and lower total cost of ownership (TCO).
Scania Metrolink HD 45-seater: A 12-metre 4×2 model with 45 seats, a Scania 9-litre 310 hp Euro 3 engine, Scania Opticruise 8-speed automated gear-changing. The vehicle is 2.6 m wide, 3.7 m high and fitted with a 465-litre fuel tank.
Scania Metrolink HD 49-seater: A 13.7-metre 6×2 model with 49 semi-sleeper seats (or 53 without calf support), a Scania 13-litre 360 hp Euro 3 engine, Scania Opticruise 8-speed automated gearchanging. The third axle is hydraulically steered for easy manoeuvring. The vehicle is 2.6 m wide, 3.7 m high and fitted with a 465-litre fuel tank.
Scania Metrolink HD 53-seater: A 14.5-metre high-capacity 6×2 model featuring 53 semi-sleeper seats (or 57 without calf support). It has a Scania 13-litre 410 hp Euro 3 engine with the other features similar to the HD 49-seater.