Scania Officially Builds Factory in Tiongkok
In October 2025, Scania took a significant step in its 134-year history by opening its third global industrial plant in China. This investment not only strengthens Scania's global footprint but also positions the company at the heart of the world's largest truck market.
The new industrial center in Rugao, Jiangsu Province, is one of Scania's largest global investments to date. Spanning 800,000 square meters, the site has a licensed production capacity of 50,000 vehicles per year and will serve the Chinese market as well as select export markets in Asia and beyond. The facility will create approximately 3,000 new jobs locally and represents a total investment of €2 billion.
Scania is the first Western OEM to be granted a full production license for a wholly owned truck plant in China, a milestone that underscores the company's long-term commitment to the market.
The Rugao facility will operate almost entirely on renewable energy sources, including locally produced biogas and certified green electricity. These measures directly contribute to Scania's Scope 1 and 2 decarbonization targets.
“Sustainability is integrated into every part of our new Rugao plant: from energy sourcing to waste management,” said Ruthger de Vries, President of Scania Industrial Operations Asia. “This isn't just about producing trucks; it's about setting new benchmarks for efficient and sustainable industrial operations.”
Scania has been present in the Chinese commercial vehicle market for the past 60 years. China is the world's largest truck market and a global innovation hub in transportation, connectivity, autonomy, and electrification. With this new industrial hub, including R&D centers in Rugao and Shanghai, Scania strengthens its local footprint and its ability to co-develop solutions with Chinese partners. This strategic investment brings Scania closer to customers in China and across Asia, enabling faster deliveries, a wider range of specifications, and deeper collaboration.
“Our presence in Rugao is more than just a factory; it will be part of China’s dynamic innovation landscape and drive Scania’s own development,” said Christian Levin, President and CEO of Scania and the TRATON Group. “By also producing and innovating locally, we can leverage China’s speed and creativity, strengthen our global capabilities, and accelerate the shift towards sustainable transport.”
Scania offers dual commercial offerings for the Chinese market
The new industrial center is designed to be part of the TRATON Modular System (TMS), which enables the Scania brand and the TRATON Group to efficiently scale, adapt, and innovate across different markets, customer demands, and product portfolios. The TMS enables the integration of unique Chinese technologies and applications that will strengthen local and global competitiveness.
Two commercial offerings are planned: first, Scania, built to high global standards and adaptable for demanding applications – both tractors and rigids, with a wide service portfolio. Second, in addition to Scania’s global offering, a new tractor product range – NEXT ERA – is being developed specifically for China’s competitive long-haul and high-volume haulage segments.
The NEXT ERA product line represents a new chapter in Scania's commercial offering, developed specifically for the Chinese market and fully integrated with the local digital ecosystem. While similar to the TRATON Modular System, it is designed for high-volume transport applications, with a standardized product and service portfolio. The TMS also enables unique technologies to be introduced in China first and then rolled out globally.
Deliveries from production in Rugao will begin in late 2025, and NEXT ERA will be launched in the first half of 2026.
