Bangalore, Oct 29 (IANS): Swedish automobile major Scania Commercial Vehicles Tuesday opened its maiden manufacturing facility in Narsapura, near here. The plant has come up with an initial investment of Rs.250 crore.

The company's new plant, inaugurated by Karnataka Chief Minister S. Siddaramaiah, will manufacture about 2,500 heavy haulage trucks, besides 1,000 inter-city buses and coaches annually.

"Today marks the beginning of a new era for us in India, and it is our largest industrial footprint in Asia so far," said Martin Lundstedt, president and chief executive, Scania Global.

According to the company, the facility will serve as its head office and centre for all commercial operations across the country.

Currently, the company's localisation levels for trucks stand at 18 percent, while for bus bodies the level has reached 100 percent.

Scania said that it plans to employ over 800 people at this facility within five years.

The plant will house two manufacturing units- one each for truck assembly and another for buses. The facility will also have service workshop and a central parts warehouse.

Scania had started production of trucks at the new facility during June and production trials have taken place for mining and off-road trucks.

The company plans to start the production of on-road trucks soon followed by bus rollout which is planned for the first quarter of 2014.

The company is bullish on improving highway infrastructure in India and acceptance of international industry practices like hub-and-spoke model.

Scania has been present in the Indian market since 2007 through a partnership with Larsen & Toubro (L&T). The company in India has also forayed into the engines segment with the launch of products for industrial, marine and power generation.