On October 15, 2025, Rugao – Scania took a historic step in its 134-year development journey. 2025 marks the 60th anniversary of Scania’s entry into the Chinese market, and on October 15, the company’s third global industrial production base, established in Rugao, officially opened. This major investment not only strengthens Scania’s global layout but also positions it at the core of the world’s largest truck market.
The new industrial production base in Rugao City, Jiangsu Province, is one of Scania’s largest global investments to date. With a total investment of 2 billion euros (approximately 16.6 billion yuan) and a land area of 800,000 square meters, it has a planned annual production capacity of 50,000 units. It will serve both the Chinese and overseas markets while creating more than 3,000 jobs.
This marks Scania becoming the first European commercial vehicle manufacturer to obtain a production license for a wholly-owned truck factory in China, officially integrating into China’s industrial system. This important milestone demonstrates the Group’s long-term commitment to and firm confidence in the Chinese market.
The Rugao Industrial Production Base operates almost entirely on renewable energy, including locally produced biogas and clean green electricity. These measures directly contribute to Scania’s global decarbonization goals.
Ruthger de Vries, President of Scania Asia Industrial Operations, said: “The concept of sustainability runs through every link of the Rugao Industrial Production Base – from energy procurement to waste management. We are not only producing trucks here but also committed to setting a new benchmark for efficient and sustainable industrial operations.”
China: A Global Frontier for Innovation
As the world’s largest truck market, China is also a global frontier in innovative fields such as transportation, intelligent connectivity, autonomous driving, and electrification. As a key part of the strategic layout of the Rugao Industrial Production Base, Scania has established R&D centers in China, located in Rugao, Shanghai, and Beijing. This further strengthens its localized layout and ability to develop solutions jointly with local partners. This strategic investment brings Scania closer to customers in China and Asia, enabling faster delivery, more diverse product specifications, and deeper cooperation.
Christian Levin, CEO of the Traton Group and President & CEO of the Scania Group, emphasized: “What we have established in Rugao is more than just a factory – it will become an important part of China’s vibrant innovation ecosystem and drive Scania’s own development. Through localized production and innovation, we can fully benefit from China’s speed and creativity, enhance global competitiveness, and accelerate the transition to sustainable transportation.”
Scania Further Deepens Its Presence in the Chinese Market
The new industrial production base is designed in accordance with the Traton Modular System, allowing Scania and brands under the Traton Group to achieve efficient expansion, customization, and innovation based on market demands, customer needs, and product portfolios. Leveraging the Traton Modular System, unique Chinese technologies and applications are integrated, which will enhance the competitiveness of products in both local and global markets.
Chinese customers will have two options:
- Scania product series built in line with global standards, customizable for different application needs – including tractors and chassis, supported by a comprehensive service portfolio.
- A new series of general-specification tractors, NEXT ERA, developed specifically for China’s highly competitive long-haul freight market.
The NEXT ERA product series is developed exclusively for the Chinese market and deeply integrated with the local digital ecosystem. Based on the Traton Modular System (TMS), it offers standardized product and service portfolios. TMS enables unique technologies to be first applied in China and then promoted to global markets.
According to the plan, vehicles produced at the Rugao Industrial Production Base will be delivered to customers by the end of 2025, and the new NEXT ERA product series will be officially launched in the first half of 2026.
