Nearly half of the cars to be churned out in the Rugao facility will be exported to the rest of Asia and Oceania.

Christian Levin, president and CEO of Scania, said at the Wednesday event that the Rugao establishment is more than a factory. The new project will be part of China's dynamic innovation landscape and "fuel Scania's own development".

"By producing and innovating locally, we can tap into China's speed and creativity, strengthen our global capabilities, and accelerate the shift towards sustainable transport," he said.