Home page > list > news

How Will Scania Navigate the Intense Market Competition After Localization in China?

In the current Chinese heavy - duty truck market, which has become a highly competitive "red ocean," a European commercial vehicle giant with 60 years of experience in China is quietly planning an unprecedented strategic transformation.
In 2020, China lifted the restrictions on foreign ownership ratios in the commercial vehicle sector, allowing foreign - funded enterprises to build factories independently. As a high - end foreign - funded heavy - duty truck brand, Scania also announced its "localization" plan. Now, with the announcement and publicity of the vehicle applications submitted by Scania Manufacturing (China) Co., Ltd. in the first batch by the Ministry of Industry and Information Technology, domestic - made Scania trucks seem to be getting closer to us.
Looking at the current domestic commercial vehicle market, it is in a stage of transformation and upgrading. The trends of electrification and intelligence are intensifying, and gas - powered and new - energy vehicles are challenging the traditional fuel - powered market. The current market competition is not only about products and prices but also about overall solutions and long - term value.
Facing the changes in the Chinese market, how will Scania respond?

Strategic Reconfiguration: Why Be an "Operational Partner" in China?

Previously, Scania (China) held a closed - door media tasting event in Rugao, Jiangsu Province, where it systematically interpreted the core content of the upgrade of its China Strategy 2.0 for the first time.
Regarding the issues of price reduction and technology balance that Chinese customers are most concerned about, Ruthger de Vries, President of Scania's Asian Industrial Operations, made it clear that "local production will not affect the quality of our trucks. Their quality is no different from that of the vehicles we produce in Europe. And with the factory being closer to customers, relevant costs will be reduced."
Although the product quality remains the same, the "strategy" has changed.David Källsäter, General Manager of Scania Sales (China) Co., Ltd., pointed out frankly in the face of the changing demands of the current logistics market: The Chinese commercial vehicle market has transcended the stage of pure product competition and entered a new stage of Total Cost of Ownership (TCO) competition and even operational competition."Most Scania users' businesses are profitable. They choose Scania to achieve greater success. However, nowadays, customers have comprehensive demands for certainty, efficiency, and flexibility."Scania's research found that even in the current highly competitive market environment, customers still face many pain points: They need more stable logistics businesses and sources of income; they are concerned about comprehensive costs such as parts, services, and financing; they attach importance to residual value management; and they also face bottlenecks in vehicle management with business expansion."As a truck manufacturer, can Scania help customers address these challenges? If not, we will eventually be phased out," said David Källsäter. "Of course, our answer is definitely yes."Against this background, Scania proposed the upgrade of Strategy 2.0. This means that Scania will be more deeply involved in customers' transportation businesses and even share operational risks.

Strategy 2.0 Upgrade: What's the New Game Plan?

The core of the strategic upgrade is the worry - free solution. The Total Cost of Ownership (TCO) remains the basic operational support provided by Scania. First, it deeply understands user needs to ensure that users can select the most suitable vehicle models and configurations. At the same time, it conducts long - term monitoring and optimization of core components such as engines, transmissions, and batteries to keep the vehicle performing reliably and with better fuel efficiency.
In addition to customized solutions for different application scenarios, there are also solutions for the entire ecological chain throughout the truck's life cycle, including maintenance, parts, financial services, used - car services, and even production capacity services. Moreover, Scania will launch the Scania APP, which will empower fleet management, truck configuration, and financial leasing solutions.On this basis, the deeper level of the strategy is to transform from a simple vehicle sales model to a comprehensive operational partner. Through the dealer network, it provides assistance and support to customers at every touchpoint in daily operations.

Model Innovation: How to Break Through with Operating Leasing?

At the beginning of August, Scania officially launched the operating leasing business for tractors, becoming the first international brand in the Chinese market to promote this model on a large scale. This is also an innovative part of its strategy.Why Choose Scania Leasing?
  • Provide the latest Super series models, which are fuel - efficient and have high residual value.
  • Tailor - make vehicles and leasing plans according to your business scenarios.
  • Offer exclusive leasing after - sales services, ensuring worry - free vehicle use.
  • Provide comprehensive operational tool support to improve your operational efficiency.
  • Deeply empower the logistics transportation business and help increase your profits.
Why Lease?
  • No need for a large - scale one - time investment in vehicle purchase, relieving financial pressure.
  • Pay rent monthly, with controllable costs.
  • Enjoy the technical advantages of new vehicles with a low threshold to ensure operational efficiency.
  • Focus on core transportation business with worry - free vehicle use.
  • Respond quickly to market changes and flexibly adjust transportation capacity according to business needs.
  • Optimize the asset structure and improve the financial statements.
Scania's financial leasing can meet the needs of Chinese customers for low - start - up capital, light operational pressure, flexible customization, and full - asset protection. Financial leasing provides diverse financial leasing services for Chinese customers and even Scania dealers, including tractor financing, trailer financing, used - car transaction financing, and insurance guarantee services.Kuan Jun, Sales Director of Scania Sales (China) Co., Ltd., explained the business logic of this model to us: "The cost of operating leasing consists of many aspects - the vehicle itself, maintenance costs, insurance costs, and financial costs. The higher you can improve the customer's operational level through your network, the lower these costs will be, which constitutes a core competitive advantage."This model is particularly suitable for the current Chinese market environment. Logistics enterprises are facing multiple challenges such as freight rate pressure, cost fluctuations, and increasingly strict environmental protection regulations. Through operating leasing, Scania converts uncertain operating costs into fixed expenditures, allowing customers to accurately predict long - term costs.Kuan Jun revealed that the results of the pilot operating leasing business by the first batch of 6 dealers exceeded expectations. "We have effectively reached many domestic - brand vehicle users who were not in our sight before."

Channel Transformation: How to Reconstruct the Dealer Network?

The dealer network is the core pillar of Scania's transformation and development in the Chinese market. Scania is accelerating the expansion of its sales and service network coverage in China. It plans to have more than 40 dealers by the end of 2025 and exceed 70 by the end of 2026.Different from the traditional 4S store model, Scania requires dealers to have comprehensive operational capabilities. "Newly joined dealers will sell new and used trucks, provide after - sales services, and offer truck leasing services."Since local production and R & D have brought significant advantages to Chinese customers, Scania's business in the Chinese market has in the present and in the coming years. To seize these growing business opportunities, we must expand the coverage of our sales and service network in China. We sincerely look for like - minded partners to fight side by side with us and grow together. We will divide the existing distribution areas into smaller units to significantly increase the coverage density and ensure that product and service solutions are provided to all customers in each area. Are you ready to seize the business opportunities and break through the competition with Scania?This means that Scania's dealers are no longer just simple vehicle sales and service providers but need to become participants in logistics operations. This transformation poses higher requirements for dealers but also brings greater opportunities.In fact, in the current highly competitive industry, dealers are also facing a "red ocean" and urgently need to transform to gain a foothold in the tide of the times.In the process of transformation and upgrading, Scania's strong product strength and excellent used - car residual value are the foundation, ensuring that customers can achieve profitability throughout the ecological chain. Financial plans, insurance plans, and operational plans can assist dealers in improving their operational levels and forming core competitiveness.

Service Upgrade: How to Build a 150 - Kilometer Service Circle?

After the Rugao Industrial Production Base is put into production, Scania will comprehensively upgrade its service product portfolio. Zong Hai, Senior Manager of Service Sales and Performance at Scania Sales (China) Co., Ltd., said that in the future, Scania will also develop supporting service products, service rights, and provide value - added services based on the consumption habits of the Chinese market and the needs of different customers.For example, in the future, Scania's service team will provide value - added services such as fleet consultants and fleet care to fleet customers, allowing customers to operate their revenue - generating products with peace of mind. The service team will be responsible for the management of the fleet, vehicles, maintenance, and even personnel."We have a goal of a 150 - kilometer service radius circle. We hope that customers can definitely find our service network within 150 kilometers of any operating location," Zong Hai said frankly.In terms of parts supply, the warehousing area of Scania's China Parts Center has been expanded from the original 3,000 square meters to 6,000 square meters, and the number of warehoused parts types has increased from 4,500 to 7,000. At the same time, Scania has also optimized the layout of regional pre - placed sub - warehouses across the country.

Digital Empowerment: How Does the APP Connect the Whole Ecology?

Facing the wave of intelligence and digitalization, Scania will also launch an APP. The Scania APP builds a digital intelligent hub with business as the core, connecting the entire ecology of vehicles, operations, after - sales, finance, and the brand. Users can bind their Scania vehicles according to their own operating conditions, query vehicle information at any time, and obtain operational support.Kuan Jun frankly stated a real - world pain point: "We have been selling trucks in China for 20 years. For example, if we want to distribute 100 yuan to each driver this year, can we do it? No. This is the key reason why we started to launch the APP and engage in customer operation."The service team will also track customers on a daily basis, pay attention to their service experiences and feedbacks. At the same time, it allows users to more directly understand the market activities and advantages of Scania products. Digital tools not only help Scania achieve effective risk management and asset management but also help customers better use vehicles and manage drivers, establishing a new way of connecting with customers.

Conclusion

From a high - end truck manufacturer to a full - value - chain operational partner, Scania will undergo a profound strategic transformation in the Chinese market. With 60 years of accumulation in China meeting a new business model, we will wait and see whether Scania can successfully open up and seize the Chinese market in the future.The entry of Scania (China) is not only a self - transformation but also provides a new example for the Chinese commercial vehicle industry to transform from product competition to operational competition. In today's era when electrification and intelligence are reshaping the industry landscape, this model of deeply participating in customer operations may become a new path for high - end commercial vehicle brands to break through the market dilemma.
Truck Picture
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
  • How Will Scania Navigate the Intense Market Competition After Localization in China?
Submit purchase request

If you need vehicle configuration and quotation, please feel free to contact us

Whatsapp:+8615206750120

Email: 15206476328lulu@gmail.com

The vehicle price and configuration reference of Chinese domestic products, you need to consult local dealers for local purchase
  • Name
  • WhatsApp / Telephone
  • Email(optional)
  • Country
  • Submit