Scania Opens New Rugao Production Base, Marking 60 Years in China

Scania has reached a historic milestone. As Scania celebrates its 60th anniversary in the Chinese market this year, the company officially inaugurated its new production base in Rugao.Jiangsu Province. This marks an important step in Scania’s 134-year history and a new phase in its global expansion. The new site strengthens Scania’s worldwide production network and brings the company closer to the world’s largest truck market — China.

The Rugao plant represents one of Scania’s largest global investments, with a total value of €2 billion (around RMB 16.6 billion). The facility covers 800,000 square meters and is designed to produce up to 50,000 vehicles a year. It will serve both Chinese and international markets while creating over 3,000 local jobs.

Scania is the first European commercial vehicle manufacturer granted full ownership of a truck factory in China — a clear sign of its long-term commitment and confidence in the market.

Sustainability is at the core of the Rugao plant. It operates almost entirely on renewable energy, including locally produced biogas and green electricity, helping Scania move closer to its global decarbonization targets.

“We’ve embedded sustainability into every aspect of the Rugao plant — from energy use to waste management,” said Ruthger de Vries, President of Scania Industrial Operations Asia. “Here in Rugao, we’re not just building trucks — we’re setting a new benchmark for sustainable, efficient manufacturing.”

China is not only the world’s largest truck market but also a global hub for innovation in connectivity, autonomous driving, and electrification. To strengthen its presence, Scania has established an R&D network across Rugao, Shanghai, and Beijing. This enables closer cooperation with local partners, faster delivery, broader product options, and more localized solutions.

“The Rugao plant is more than just a factory — it’s part of China’s dynamic innovation ecosystem,” said Christian Levin, President and CEO of Scania Group. “Through local production and innovation, we can better leverage China’s speed and creativity to boost our global competitiveness and accelerate the shift toward sustainable transport.”

The new facility is built on the TRATON modular system, allowing Scania and its sister brands to flexibly adapt production based on market demand, customer needs, and product portfolios. It also integrates China’s unique technologies into Scania’s global production network, enhancing competitiveness both locally and internationally.

In China, Scania will offer two product lines:

· Scania Global Standard Series — customizable trucks, including tractors and chassis, built to Scania’s global quality standards and supported by a full service network.

· NEXT ERA Series — a brand-new product line developed specifically for China’s long-haul transport market.

Developed on the TRATON Modular System (TMS), NEXT ERA combines Scania’s global expertise with China’s fast-evolving digital ecosystem. The series provides standardized products and services that can quickly respond to market changes. Technologies first introduced in China will later be shared across Scania’s global operations.

The first trucks from the Rugao plant are scheduled for delivery by the end of 2025, with the new NEXT ERA series set to debut in the first half of 2026.

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