TRATON invests in its own production facility in China through Scania

Scania makes a substantial investment in its own production facility in Jiangsu province. The TRATON GROUP aims to be represented as a Global Champion in all major markets. Scania’s construction of its own factory in China brings the entire group significantly closer to this goal. China is expected to replace Brazil as Scania’s largest single market by the end of the decade.

(Munich) The TRATON GROUP continues to expand its presence in China, the world’s largest commercial vehicle market. In a first step, Scania is making an investment in its own truck production facility in Rugao, Jiangsu province, 150 kilometers northwest of Shanghai. Series production is scheduled to begin in early 2022. Scania’s long-term substantial investments in China also include the establishment of research and development on-site.

Significant step towards the goal

“The TRATON GROUP aims to be represented as a Global Champion in all major markets. Scania’s construction of its own factory in China brings the entire group significantly closer to this goal,” said Matthias Gründler, CEO of the TRATON GROUP. China is the world’s largest single market for commercial vehicles, accounting for around 40 percent of global sales. The market is dominated by domestic manufacturers, but the demand for modern vehicles with advanced technology is increasing due to the growing requirements for efficient logistics and sustainable transport. “The technological requirements for commercial vehicles are increasing worldwide and are increasingly converging in international markets. This creates new opportunities for our brands with their state-of-the-art products,” Gründler said.

Gradual expansion of the new location

“Expanding our presence in the Chinese market is crucial for Scania and the global growth of the TRATON GROUP,” said Henrik Henriksson, President and CEO of Scania. The new location in Rugao will be gradually expanded and developed into a fully-fledged unit within Scania’s global production and supplier structure. “The goal is to make China not only our third industrial pillar but also a regional center for sales to other Asian markets,” Henriksson added. By the end of the current decade, Scania’s sales in China are expected to reach at least the level of Brazil, which has so far been the largest single market for the premium brand.

New opportunities in the Chinese market

The establishment of a dedicated production and sales location in China was made possible by Scania’s acquisition of the Chinese company Nantong Gaokai Auto Manufacturing Ltd., which meets the necessary licensing requirements on-site. The acquisition opens up new opportunities for the brands of the TRATON GROUP in the important Chinese market. MAN Truck & Bus has maintained a strategic partnership with Sinotruk, one of the largest truck manufacturers in the Chinese market, since 2009. Additionally, MAN holds a 25% stake plus one share in Sinotruk. This allows MAN to participate in the Chinese market. In addition to collaborating with Sinotruk in the volume segment, the export of MAN vehicles to China also serves the rapidly growing premium truck market.
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