Bus Industry News, Electric Buses

Scania weighs in on power source debate while ramping up zero emissions fleet

ABC Magazine sat down with Scania Australia managing director Manfred Streit to discuss the future of Scania’s buses and coaches down under

In an exclusive chat with Scania Australia managing director Manfred Streit, ABC Magazine found out the future direction of the heavy vehicle giant in the bus and coach sector.

Having been with Scania for more than 15 years, Streit was appointed to managing director of Scania Australia in 2022 after a successful stint as country manager for Scania in Austria.

He’s immediately been on the front foot for the bus and coach side of Scania in Australia, with the brand’s latest Touring coach model recently released.

“Scania is a big part of the bus business globally as we’re always in the top three for the number of buses ordered,” Streit told ABC.

“About 25 per cent of our total vehicle volume is buses, accounting for roughly 22 per cent of the bus market.”

Streit says he’s been proud of the standing Scania Australia has in the local bus industry, with the manufacturer’s experience giving Scania an advantage when it comes to building buses locally.

While Scania Australia has been a major player in the diesel and biofuel areas in recent years, Streit is adamant that Scania is quickly turning its eye to the zero-emissions transition that is dominating the Australian bus and coach market.

So far, he’s keeping his cards close to his chest when it comes to which power source Scania Australia will prefer for long-term bus and coach manufacturing.

“We’re not concentrating on the one power source,” Streit says.

“Currently we think electric buses are more effective when it comes to getting the energy on the road and in production, but we are also participating in hydrogen trials to ensure battery electric buses aren’t always our core product.”

While these hydrogen fuel-cell bus trials get underway, Scania Australia has already begin selling battery electric vehicles.


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Yet Streit says there is one clear issue preventing Scania Australia from unleashing its complete global bus and coach range to the local market.

“In Australia, only 10 per cent of our buses are completely built up (CBU) due to the 2.5m width rule,” Streit says.

“The rest we can only build chassis and have to partner with local bodybuilders because our models don’t fit in with this width rule.

“From what I know, transport ministers in Australia are currently unaware of the width problem and we need to harmonise it very soon.”

Despite this issue, Streit says mining trucks aren’t affected by the width/ front axle weight issue so Scania has some early BEV trucks operating in the sector.

Streit says biodiesel can offer a significant CO2 reduction when used with diesel powertrains, although the new Scania Australia managing director says biodiesel is cheaper in Austria. 

It fast tracks his wishes for a zero-emissions future down under, with the end goal for Scania Australia being to produce a range of battery electric and hydrogen buses that can also be autonomous.

“We’re committed to being the most sustainable product and solutions manufacturer, it’s in our DNA,” Streit says.

“We also now see ourselves as consultants more than just manufacturers when it comes to charging capabilities.”

Streit’s final emphasis is on the local skilled worker shortages facing the industry.

Since arriving in Australia last year, Streit has helped focus on recruiting and retaining more skilled young people into the sector to benefit Scania for years to come.

“Our apprenticeship program is a major focus for us moving forward,” he says.

“We’ve had more than 20 apprentices come in this year as part of the program, with close to 100 in total.

“People are our most important resource at Scania and we’re investing in recruitment and our workshops.”

It forms a wish list for Streit.

The Scania Australia managing director has three key issues that he wants the Australian government to consider when it comes to allowing big manufacturers like Scania to succeed down under.

If these amendments can happen, Streit is confident that Scania Australia will be a leading member of the local zero-emissions bus transition.

“My first wish is to fix the width and front axle weight limits in Australia,” he says.

“I then want to see cleaner truck and bus subsidies for the transition to both Euro 6 and zero-emissions models.

“Lastly, I would love to see Australia make immigration easier for staff – we’ve recently recruited 15 technicians from the Philippines and we would love to continue doing this on a broader scale.”

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