The company, which has been selling mining trucks in collaboration with Larsen & Toubro since 2007-08, has formed an Indian arm, Scania Commercial Vehicles India Pvt Ltd.
The new company will launch heavy haulage trucks and luxury buses in the country next year.
"We will set up a regional product centre at Bangalore for assembling heavy haulage trucks and city and inter-city luxury buses," said Henrik Fagrenius, managing director, Scania Commercial Vehicles India.
The company will hire 100 employees initially.
Fagrenius did not divulge how much the company will invest in the proposed unit, but said it will be operational by next year.
"We are looking at selling 2,000 trucks and 1,000 buses and 1,500 engines for industrial and marine applications in India over the next five years."
The company will start road tests for heavy haulage trucks and luxury buses by September.
Scania's heavy trucks are available in the range of 220-730
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