Scania Commercial Vehicles India Pvt. Ltd, which is the Indian unit of the leading Swedish truck and bus maker, has indicated that it is planning to double its production in the south Asian nation.

Anders Grundströmer, senior vice-president, Scania group, and managing director for the India operations said that the company is aiming to enter the country's city bus segment next month as well as the inter-city luxury bus market that offers a high volume demand in the market. The company is aiming directly compete with Volvo Buses India and Mercedes Benz in the premium buses category in the Indian market.

"We are doubling our production every year now. We have a capacity to produce 2,500 trucks and 1,000 buses. By 2020 we will have a market of about 4,000-5,000 buses a year and we will have a 30% market share," Grundströmer said.

According to estimates, a total of 600 premium buses were sold by the company in 2013 and this is expected to grow to around 800 this year. The company has said that it is aiming to control 30 per cent of the market share in the premium bus segment by 2015, with a target to sell around 1,200 buses a year in the Indian market.