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            october 21, 2019

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Scania set to grow 50% in construction


Scania aims to boost global sales in the construction vehicle segment by 50% from 12,000 units in 2007 to around 18,000 in 2010. Scania sees great potential in emerging markets, where infrastructure is in the initial phase of expansion.
Increased focus on complete vehicles with bodywork and on comprehensive service support from Scania make vehicle ownership a matter of one-stop shopping for operators.
With products renowned for durability and power and a global sales and service network, Scania has all the prerequisites for strengthening its position:
“Scania's strong international presence in long-haulage paves the way for expansion into other market segments,” says Henrik Henriksson, Senior Vice President Trucks, Franchise and Factory Sales at Scania.
“Scania is selling strongly in expanding markets and is now also entering new markets with construction vehicles first, expecting the emerging transport infrastructure to gradually broaden the market to haulage as well.
“Scania has successfully adopted this strategy for exciting new markets, joining forces with leading actors in the construction and mining sectors. Larsen & Toubro in India and United Tractors in Indonesia have thus added Scania’s heavy-duty construction trucks to their broad range of construction equipment and services. Our
alliance with state-owned Vinacomin, which operates the entire mining sector in Vietnam, provides a new foundation for growth.
“Tippers and mixers are our main construction products. We are also increasingly offering complete construction trucks via the Scania network, cutting lead times and offering customers one-stop shopping for their vehicle operations.
“Scania has long experience of entering new markets with patience. With a competitive product, a flexible organisation and comprehensive services to support operators, we have great hopes to continue to build the brand,” concludes Mr Henriksson.
To maximise vehicle uptime and performance, Scania always offers parts and service as part of the deal, as well as business support and financial services to make sure the customer’s operations run as efficiently as possible.
Scania's modular component system, implemented for the past 60 years and continually being refined, strongly supports customer uptime, facilitates parts supply, workshop establishment and training of service technicians. With modular component interfaces, building highly specialised vehicles is also perfectly straightforward.
Driver appeal is ensured by responsive handling, high-torque engines and a carefully designed driver environment, providing the comfort and convenience needed to recruit and retain drivers.
Complete vehicles or tailored factory preparations Scania offers extensive chassis preparations available ex-factory to cut lead times at bodybuilding companies. Preparation includes brackets, piping and wiring, as well as
a convenient CAN-bus interface to integrate vehicle and bodywork functions. A wide choice of power take-offs takes care of the need for auxiliary power.
Bodybuilding is also helped and weight saved by the use of exhaust gas recirculation (EGR) on most Euro 4 and 5 models. Scania EGR is an emission technology that is self-contained in the engine, without any extra chassis-mounted equipment or additives. Customers preferring selective catalytic reduction (SCR) technology also
have this option. For markets with other emission standards or higher sulphur content in the fuel, Euro 3 engines are available.
Scania is also supplying complete vehicles in some markets in western Europe, thereby going one step further to minimise bodybuilding lead times. Complete tippers and mixers are sold in cooperation with the Scania distributor/dealer and well-known bodybuilders.
The ultimate step in terms of complete vehicle quality, lead time and service back up is provided by Scania ReadyBuilt vehicles. Scania ReadyBuilt involves full quality and support secured by Scania. The vehicles are delivered to the customer ready to put into operation, with full parts and service backup via the Scania service network.

Market approach
Russia is typical of Scania's approach, showing strong growth in both the haulage and construction segments. Scania ReadyBuilt tippers are supplied via Scania’s Russian dealers, radically cutting the lead time for bodybuilding. Specifications include six- and eight-wheeler tippers. Scania's sales of construction trucks in Russia will be around 1,500 in 2008 and are expected to grow rapidly in the next few years.
The Czech Republic, Slovakia and Poland are also showing strong growth, along with other markets. For 50 years, Scania has enjoyed a solid position in the haulage segment in Brazil and is currently expanding strongly into construction and mining.
Scania's heritage in the construction truck segment dates back to the early 1900s. Since the 1950s Scania has expanded in the international market. Scania has also been a renowned OEM supplier of engines for construction machinery worldwide since the early 1900s.

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