Scania to Boost Engine Production by 5% in São Bernardo Amid Rising Demand

Scania plans to increase its engine production by 5% by December, raising the capacity of its São Bernardo do Campo plant to 40,000 units per year. Due to heightened demand abroad, this engine unit has been operating on three shifts since mid-last year. To enhance productivity, the pace at workstations will need to be accelerated.

“We are already implementing measures in the production area to increase capacity. We are implementing tools and improvements that operators themselves suggest to us,” said CEO Christopher Podgorski during the IAA Transportation fair.

The executive explained that in Europe, there has been a rise in demand for trucks operating in a power range similar to Scania’s trucks in the Brazilian market, justifying the production increase.

Of the company’s total engines produced in the ABC Paulista region, 30,000 are intended for vehicles sold in the country, while the remaining volume is for export.

Scania operates an integrated production system that connects all the company’s factories. If demand increases in a specific market and the nearest factory cannot meet it, another facility abroad is activated.

This type of production platform has helped the company keep its lines running during periods of low domestic and international demand.

Recently, when the company noticed domestic sales declining, it was exports that sustained the production lines in São Bernardo do Campo through this production system.

Domestic Truck Market on the Rise

The domestic truck market is currently recovering from a lean period that began with the introduction of Euro 6 engines.

According to Renavam data released by Anfavea, the association representing manufacturers in Brazil, sales increased by 13% in the year-to-date until August, compared to the same period in 2023.

Production also rose during this period, up 41%, totaling 89,400 units by August. Conversely, vehicle exports fell by 18% in the first eight months, with 241,600 units shipped.

Segment analysis shows that truck exports only declined by 8.6% from January to August compared to 2023, totaling 10,000 units, indicating that Scania can—and should—celebrate the higher demand for its engines abroad.

Source: Automotive Business

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