Scania announces R$2bn investment in sustainable technology expansion

24 Jun, 2024

Scania announces R$2bn investment in sustainable technology expansion

The wave of new investment announcements in the automotive industry continues, now extending to the commercial vehicle segment. Scania recently announced a R$2 billion ($370 million) investment cycle for 2025 to 2028. This makes Scania the first truck and bus manufacturer to join the electrification trend initiated by car manufacturers, with a significant portion of the investment dedicated to producing electric buses.

The total new investments in the automotive industry now amount to R$126.1 billion over the decade, including R$115.5 billion from car manufacturers, R$8.6 billion from previous truck and bus industry programs, and the new Scania cycle.

Scania’s previous R$1.4 billion investment program, ending this year, prepared the São Bernardo do Campo factory for producing new-generation trucks powered by gas, biodiesel, and biomethane. According to Christopher Podgorski, president of Scania’s Latin American industrial division, the company is also gearing up for electrification. “The common enemy is carbon,” he stated.

Podgorski noted that the fully electric urban bus to be produced in Brazil will match those in Europe. Imported units are already familiarizing the development team with the product.

Scania’s global production strategy helps the Brazilian factory become an export hub, with nearly half of its production exported. “We always operate at 80% capacity; if demand falls in Brazil, we export and vice versa,” Podgorski explained.

While electric trucks are already used for urban deliveries and short distances, electrification in the heavy-duty segment is complex due to limited charging infrastructure. However, Scania is considering this technology for trucks. The Brazilian factory will become Scania’s third global unit to produce electric vehicles, making it a significant operation for the company.