VW Traton’s Swedish truck maker, Scania, has announced it has acquired Chinese truck company with the intention of manufacturing vehicles in the world’s biggest auto market.

Scania has acquired Nantong Gaokai based in China’s eastern city of Rugao, according to an official filing and as a result the acquisition allows it to obtain a truck manufacturing licence in China.The move comes after Scania said it would invest in a battery assembly plant in Sweden as it explores future technologies.

Scania’s has declined to comment on the time it will take to complete the manufacturing set-up, the planned capacity, or the models it plans to produce in China.

Nantong Gaokai was previously a unit under state-owned Jiangsu Gaokai Investment Development Group.

Overall truck sales in China totalled 3.87 million vehicles up to the end of October, a  jump of  24 per cent since January,  driven largely by government investment in infrastructure and as buyers upgraded to comply with tougher emissions rules.

Meanwhile, Chinese officials have been drafting new rules to make trucks cleaner, smarter and safer.

The market is largely dominated by local automakers including FAW Jiefang Group Co Ltd, Dongfeng Motor Group Co Ltd and Sinotruk Hong Kong Ltd, which offer more price-competitive vehicles.

All Scania trucks sold in China are imported and priced significantly higher than those of domestic rivals.

International truck makers including MAN and Volvo have engine partnerships with Chinese companies.

It has been previously reported that Daimler plans to build Mercedes-Benz-branded trucks through its joint venture with Beiqi Foton Motor Co Ltd in Beijing.