Scania Adds Powertrain Production to Its Production Base in Rugao, China

On 29 October 2023, Scania, a subsidiary of TRATON GROUP, broke ground on the second phase of the project in Rugao, adding powertrain production to the original vehicle project.

For the project, it is planning to produce engine, transmission, axle assemblies as well as corresponding painting, testing and logistics facilities. Then SCANIA will have a complete production chain in Rugao with an annual capacity of 50,000 units. The Rugao facility will provide a boost to its presence in Asia and also provide its efforts to drive the shift towards sustainable transport because it will immediately become a zero-emission factory, using green electricity and renewable fuels.

This demonstrates Scania's commitment to long-term investment and development in Rugao as well as its full confidence in the Chinese heavy-duty truck market.

The Chinese transport market is becoming more and more complex, and transport companies are increasingly focusing on specific segments of the transport ecosystem," says Jimmy Renström, Managing Director of Scania Sales (China) Co. Scania China will help these customers enjoy very competitive operational economy.

Scania has been named “Green Truck” for its outstanding transport efficiency and fuel performance for the sixth year in a row, and is a world-leading brand with a 132-year history, and will further contribute to the sustainable development of China's transport industry by producing trucks in Rugao with its latest powertrain technology.

The new factory, which is based on Scania’s unique modular production system, will produce vehicles for both the Chinese and Asian export markets when it opens for business in late 2024/early 2025, significantly shortening delivery times to Asian customers. It will be Scania’s fourth global production base, after Södertälje in Sweden, Zwolle in the Netherlands and São Bernardo do Campo in Brazil.

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