Unipart and Scania expand China operations with new logistics deal

Unipart Group, a United Kingdom-based supply chain performance improvement partner, has secured a three-year aftermarket logistics contract with commercial vehicle manufacturer Scania, a key subsidiary of Volkswagen Group’s TRATON SE. Announced on June 11, 2025, the agreement marks a strategic milestone in both companies’ Asia-Pacific expansion and will be anchored by a new logistics hub in Kunshan, China.

The Kunshan facility, which officially began operations as part of this collaboration, will play a pivotal role in delivering aftermarket support to Scania’s nationwide dealer network. The site is expected to double its size and throughput capacity within the next 12 months, underlining the scale and growth trajectory of this project.

This latest contract builds upon Unipart Group’s existing relationship with Scania and reinforces the British logistics partner’s commitment to deepening its footprint in the Chinese commercial vehicle supply chain.

What is the significance of the Kunshan logistics site for Scania?

Scania’s new logistics model in China is built around centralizing aftermarket operations at a single, strategically positioned location. The Kunshan site, situated in Jiangsu Province near key highway and port infrastructure, offers direct access to Scania’s dealership network across the country.

Under the new agreement, Unipart Group will provide a comprehensive suite of aftermarket logistics services. These include transportation, inland haulage, warehousing, and value-added services such as pre-manufacturing support. By consolidating imported and domestically sourced components into one unified supply chain hub, Scania aims to enhance speed, reliability, and inventory efficiency.

The aftermarket logistics center is intended to serve as a scalable backbone for Scania’s long-term growth plans in China. It will enable faster delivery of replacement parts and components to dealerships, improving uptime for fleet customers and reducing total cost of ownership—key performance drivers in the competitive Chinese truck market.

Why Unipart Group was selected for Scania’s China aftermarket contract

According to Carl Williams, Managing Director for Asia Pacific at Unipart Group, several factors played a critical role in winning this high-value contract. These included the logistics firm’s strong record of performance on previous Scania partnerships, shared corporate values around sustainability and operational excellence, and a common culture of innovation.

Unipart Group’s growing portfolio of digital logistics tools also helped distinguish its bid. The firm’s proprietary solutions for real-time tracking, smart warehousing, and advanced analytics are increasingly seen as must-haves for global OEMs operating in complex and dynamic markets such as China.

In a statement accompanying the announcement, Darren Leigh, Chief Executive Officer of Unipart Group, emphasized that the successful contract award was “a direct consequence of Unipart and Scania teams working in partnership to deliver a strategically important offer.” Leigh added that the Kunshan project would “directly deliver Scania’s growth strategy in China.”

What this contract means for China’s logistics and truck sectors

The aftermarket ecosystem is becoming an increasingly critical competitive frontier for original equipment manufacturers in China’s commercial vehicle industry. With the nation’s freight and construction sectors rebounding after years of regulatory volatility and pandemic-related disruptions, OEMs like Scania are refocusing on lifecycle services that extend beyond vehicle sales.

Scania has steadily expanded its presence in the Chinese market over the past decade, with a network of dealerships, service centers, and a localized production strategy. By selecting Unipart Group as its aftermarket logistics partner, the Swedish truckmaker is doubling down on infrastructure that supports customer retention, fleet uptime, and total cost efficiency.

For Unipart Group, the deal represents a strategic entry point into higher-value segments of the Chinese logistics market. While many Western firms have faced challenges navigating geopolitical tensions, data localization rules, and rising local competition, Unipart’s collaborative approach and emphasis on mutual operational alignment appear to have resonated with Scania’s leadership.

How are analysts and supply chain experts reacting to the Unipart–Scania partnership?

While Unipart Group is privately held, its expansion into China through this contract has not gone unnoticed in institutional supply chain circles. Logistics analysts point to the deal as a case study in how multinational Tier 1 suppliers can position themselves as value-adding partners in OEM ecosystems, especially in Asia.

The scale and scope of the Kunshan operation suggest that Unipart Group is not merely playing a subcontractor role. Rather, it is stepping into a higher-tier strategic partner position—responsible for mission-critical aftermarket performance metrics in one of the world’s most important truck markets.

In parallel, Scania’s decision to consolidate its aftermarket operations reflects a broader shift within the TRATON SE group toward leaner, digitally integrated service models across geographies. As automotive OEMs seek to boost non-cyclical revenue from parts, services, and subscriptions, efficient and responsive logistics are becoming core to the value proposition.

What’s next for Unipart Group’s expansion strategy in Asia-Pacific?

The Kunshan project is unlikely to be a standalone initiative. Based on current growth projections and Scania’s China strategy, further operational scaling is anticipated. This could include additional warehousing modules, expanded pre-manufacturing zones, or integration with predictive maintenance platforms to enable just-in-time parts replenishment across the Scania network.

Unipart Group may also seek to parlay this success into broader regional opportunities. With a growing footprint in Southeast Asia and India, the logistics provider is well-positioned to support other global OEMs exploring aftermarket expansion in fast-growing economies.

Analysts expect that Unipart’s ability to demonstrate world-class logistics execution under Chinese market conditions will enhance its credentials across other high-barrier geographies. Future partnerships with EV truckmakers, industrial equipment OEMs, or off-highway vehicle manufacturers could follow—especially in sectors where uptime is monetized and logistics become a competitive lever.

Why the Unipart–Scania deal matters for global automotive logistics

Unipart Group’s three-year logistics contract with Scania is more than a regional deal—it is a global signal. As the commercial vehicle landscape undergoes transformation driven by electrification, digitalization, and service-centric models, logistics partnerships like this one form the connective tissue between strategy and execution.

Scania’s selection of Unipart as its aftermarket logistics partner for China reflects confidence in operational excellence, cultural alignment, and strategic capability. For Unipart Group, the Kunshan hub is a launchpad—not just for servicing a truckmaker’s parts flow, but for becoming a key player in Asia’s logistics modernization.

If the Kunshan operation performs to expectations, the partnership could set a precedent for how Western logistics firms co-create value with global automotive brands in emerging markets. In a world where logistics resilience is both a commercial imperative and a geopolitical advantage, this is a bet worth watching.