Scania Launches Major Investment in China with New Production Hub and NEXT ERA Truck Range

Scania Launches Major Investment in China with New Production Hub and NEXT ERA Truck Range

(IN BRIEF) Scania has opened its third global industrial hub in Rugao, China, marking a €2 billion investment and the company’s first wholly owned truck production facility in the country. The 800,000 m² plant will produce up to 50,000 vehicles annually and create 3,000 jobs, using renewable energy sources to meet Scania’s decarbonisation targets. The facility expands Scania’s presence in the world’s largest truck market and enhances collaboration with Chinese partners through local R&D and innovation. Alongside global Scania models, the new NEXT ERA product line will cater specifically to China’s high-volume transport sector, leveraging the TRATON Modular System for technology sharing and scalability. Production begins in late 2025, with NEXT ERA launching in 2026.

(PRESS RELEASE) SÖDERTÄLJE, 16-Oct-2025 — /EuropaWire/ — Scania has marked a historic milestone in its 134-year legacy with the inauguration of its third global industrial hub in Rugao, Jiangsu Province, China — a landmark €2 billion investment that expands its global manufacturing footprint and cements its position in the world’s largest truck market. Spanning 800,000 square metres, the new facility has a licensed annual production capacity of 50,000 vehicles and will serve both domestic and select export markets across Asia and beyond, while creating approximately 3,000 local jobs.

As the first Western original equipment manufacturer (OEM) to receive full approval for a wholly owned truck production facility in China, Scania demonstrates its deep, long-term commitment to the market. The Rugao hub operates almost entirely on renewable energy, including locally sourced biogas and certified green electricity, contributing directly to Scania’s Scope 1 and 2 decarbonisation goals. “Sustainability is built into every part of our new factory in Rugao: from energy sourcing to waste management,” said Ruthger de Vries, President of Scania Industrial Operations Asia. “This is not just about producing trucks; it’s about setting a new benchmark for efficient and sustainable industrial operations.”

Scania’s presence in China spans six decades, and this new investment further strengthens its ties with one of the world’s leading centres for innovation in transport, autonomy, connectivity, and electrification. Alongside its R&D centres in Rugao and Shanghai, the new hub allows Scania to work more closely with Chinese partners and customers, enabling faster delivery times, greater customization, and enhanced collaboration. “Our establishment in Rugao is more than a factory; it will be part of China’s dynamic innovation landscape,” said Christian Levin, President and CEO of Scania and the TRATON Group. “By producing and innovating locally, we can harness China’s speed and creativity, strengthen our global capabilities, and accelerate the shift toward sustainable transport.”

The Rugao site will also house Scania’s dual commercial offering for the Chinese market. The first product line will feature Scania’s globally recognized trucks and services, customized for demanding applications and built to its high international standards. The second line, NEXT ERA, is a new tractor product range developed specifically for China’s competitive long-haul and high-volume transport segment. NEXT ERA, fully aligned with China’s digital ecosystem, reflects Scania’s integration with the TRATON Modular System (TMS) — a framework that allows TRATON brands to innovate and scale efficiently while sharing technologies across regions. This modular approach also enables Chinese-developed technologies to debut locally before being adapted for global use.

Deliveries from the Rugao facility are expected to begin in late 2025, with the official launch of NEXT ERA planned for the first half of 2026. The inauguration event will soon be available to watch on Scania Group’s YouTube channel.