The Sweden-based maker of premium vehicles Scania has announced the closure of its premium bus body manufacturing plant in Karnataka.

Owing to scarce demand for their premium buses in the environment friendly and high-performance category, the in-house production of bus bodies will effectively cease, while the bus and truck chassis production will continue. The inventory will, however, meet the demand from the market.

“The premium segment in the bus business in India is very small and the numbers have not been sufficient to enable profitability for Scania, the order book is slow. We continue to have ready stock on the yard due to which it has become unviable to continue bus building operations at our Narasapura plant in Kolar,” a statement from Scania said.

Scania has assured support towards all its impacted employees by offering a severance scheme.

comment COMMENT NOW