Scania AB, a renowned Swedish truck manufacturer and part of the Traton group, is set to open its new production hub in China by the fourth quarter of 2025. The company’s CEO, Christian Levin, confirmed the news, highlighting the significance of the EUR 2 billion investment in the facility located in Rugao, Jiangsu province.
With existing manufacturing hubs in Sweden and Brazil, Scania aims to enhance its global presence by establishing a production capacity of 50,000 trucks per year in China. This strategic move is expected to boost sales in the largest vehicle market globally and facilitate exports to other Asian markets.
One of the key advantages of the new facility is the reduction in delivery times across the Asia-Pacific region. Currently, customers in Asia have to wait around six to seven months to receive a Scania truck from Europe or Brazil. By localizing production in China, Scania aims to streamline its supply chain and meet customer demands more efficiently.
Moreover, the Rugao facility will enable Scania to access cutting-edge technologies prevalent in the Chinese market, such as zero-emission drivetrains and smart, connected features. By being closer to the competition and part of the local ecosystem, Scania plans to leverage these advancements to enhance its product offerings and stay ahead in the rapidly evolving truck industry.
In addition to the China expansion, Scania recently announced a substantial investment of US$ 350 million in its operations in Sao Paulo, Brazil. This investment will focus on upgrading production facilities and introducing clean transportation solutions, including electrified powertrains, to meet the growing demand for sustainable transport solutions.
Overall, Scania’s strategic investments in China and Brazil reflect its commitment to innovation, sustainability, and market expansion. By establishing a strong manufacturing presence in key regions, the company aims to strengthen its position as a leader in the global trucking industry.
