Scania, Swedish truck maker to Launch Euro 2 Billion China Factory, Eyes Asian Expansion

[冖_冖]

https://www.reuters.com/business/autos-transportation/scania-readies-2-bln-euro-china-hub-eyeing-asian-growth-2025-05-26/

Scania to Launch Euro 2 Billion China Factory, Eyes Asian Expansion

Scania, Swedish truck maker, plans to establish a facility that will cost €2 billion (or, US$2.28 billion) in Rugao, Jiangsu province, China, by October...

www.asiabusinessoutlook.com

Scania to Launch Euro 2 Billion China Factory, Eyes Asian Expansion​

Wednesday, 28 May 2025

Scania, Swedish truck maker, plans to establish a facility that will cost €2 billion (or, US$2.28 billion) in Rugao, Jiangsu province, China, by October. Scania CEO Christian Levin indicated that this will be the company's third manufacturing base globally, following Sweden and Brazil.

Overall, Levin noted that the Chinese facility will be able to produce up to 50,000 vehicles per year - nearly double the Brazilian facility's production in 2024. Levin noted that more demand for parts and equipment from South America could be stimulated with the movement of Scania towards the fast-moving transport technology of China.

Key Highlights:

• Scania to open €2 billion truck plant in China by October, its third global production hub.
• New Chinese facility to reach 50,000 vehicle capacity, boosting demand for South American parts.
• US$350 million to be invested in Brazil for clean transport and electrification through 2028.

At the same time, Scania is preparing to commence a new investment cycle in Brazil worth US$350 million, starting in January 2024 and continuing until 2028. The investment will be focused on the development of clean transport innovations, including electrification, specifically at its hub in São Paulo. The multi-region production strategy where Scania sells the same products and solutions from Europe and South America has helped Scania to become stronger in those markets. In addition, Scania's lack of a strong presence in Asia has presented some logistical concerns related to delivery times to customers.

Levin mentioned that he continues to be concerned about trade tensions in the world with the U.S. however, he is optimistic about the Mercosur-EU trade agreement which may further enable Scania to be competitive in Latin America.

 

[冖_冖]

Scania Accelerates EV Truck Production in China

Scania will fast-track battery-electric truck output at its Rugao plant as China's e-truck sales surge, potentially reaching 50% market share by early 2027.

www.briefs.co

Scania fast-tracks electric trucks in China as diesel bites​

Summary:​

• Scania AB, Volkswagen AG's truck unit, is accelerating plans to build battery-electric trucks at its new Rugao, China factory.
• CEO Christian Levin says production begins once a license is in hand, and he forecasts electric rigs will account for 50% of China's market as 2027 begins.
• BloombergNEF reports first-half e-truck sales in China jumped almost 80% year over year and could comprise close to one third of total truck sales this year.

Why Scania is stepping on the pedal​

Scania is moving faster in China, aiming to assemble battery-powered models at its Rugao plant as soon as it secures a production license.

The Rugao site, opened last year, is Scania's first wholly owned factory in China. Built to serve China and other Asian markets, it can produce both conventional and battery-electric trucks.

China's e-truck curve is getting steeper​

According to BloombergNEF, electric-truck sales in China climbed by almost 80% during the first half compared with a year earlier, and they are projected to near one third of total truck sales this year, up from about 8% a couple of years ago. Policy and pricing are doing the pushing: trade-in subsidies and pricier diesel in the aftermath of the US-Iran war are boosting demand. Beijing had aimed for a 40% share by 2030, and the current trajectory is outrunning that mark. Reflecting the pivot, Sinopec's Economics & Development Research Institute expects China's diesel consumption will drop by more than 10% this year.

Levin said the rapid uptake implies China has figured out how to add charging stations and reinforce the power grid, which he called the biggest challenge in many countries, including in Europe.

Competitive map and infrastructure reality​

China's surge in electric big rigs tightens the screws on global rivals, including Traton, Daimler Truck Holding AG and Volvo AB. Last month, German supplier ZF Friedrichshafen AG said the "center of gravity for electric-drive technology" in trucks now sits in China.

Europe looks tougher. Levin pointed to sparse charging infrastructure, limited grid capacity and higher operating costs. Market structure adds friction too: the average European haulage company runs only seven or eight trucks, and if customer patterns change, routes that fit e-trucks can disappear. "Then you're left with a stranded asset," he said.

https://www.bloomberg.com/news/articles/2026-10-20/vw-s-scania-hastens-china-e-truck-push-as-drivers-abandon-diesel

VW’s Scania Hastens China E-Truck Push as Drivers Abandon Diesel