New Delhi: Swedish commercial vehicle manufacturer Scania AB has decided to stop in-house production of its premium buses in India at its manufacturing capacity in Narasapura owning to the lack of demand. The company, though, will continue with the in-house production of chassis for buses and trucks in its plant.

“The premium segment in the bus business in India is very small and the numbers have not been sufficient to enable profitability for Scania, the order book is slow. We continue to have ready stock on the yard. Due to which it has become unviable to continue bus building operations at our Narasapura premises," said the company in a statement.

The Swedish manufacturer is optimistic about the long-term prospects in the Indian market and hope that there will be an uptick in demand for environment friendly and high-performance buses.

“We will continue to meet the market demand as required basis ready stock and available partners. Scania is a responsible employer and will do right to its people and support the employees during this period of financial adversity. Scania is hereby offering severance scheme to all impacted employees," said the company in the press statement.