Homegrown SC Auto launches first made-in-Singapore bus to meet demand for coaches

Singapore

HOMEGROWN bus designer and manufacturer SC Auto has launched the SC Neustar, a bus designed and built in Singapore from scratch.

The bus cost S$6 million to develop, and is the culmination of the company's S$60 million investment into its development and manufacturing capabilities.

Its rollout makes SC Auto the only manufacturer of integral coach buses in Asia. The integral way of manufacturing builds entire buses without using an underframe, with the chassis incorporated into the framework.

To meet the growing demand for coach manufacturing, the company has doubled the area of its Singapore factory from 100,000 sq ft to 200,000 sq ft.

Unveiled at an event yesterday, the new bus model promises higher fuel efficiency from its lightweight design, drivability and passenger comfort. It is runs on the Euro 6 emission standard, a set of stringent standards adopted by European automotive makers to ensure buses meet exhaust and noise emissions benchmarks in the drive to reduce the carbon footprint of vehicles globally.

That this bus is fully developed and assembled in Singapore catapults SC Auto from being a builder of bus bodies to an Original Equipment Manufacturer (OEM). Being an OEM opens the way for the company to build its own products from start to finish.

SC Auto's S$30 million production facility in Yangon, Myanmar will commence operation in early 2019. It will account for a portion of the labour the company needs, and is expected to increase the manufacturer's overall production five-fold.

SC Auto will also be the first approved foreign bus manufacturer in Myanmar, giving it a first-mover advantage in the race to meet the growing demand for buses in the country.

When SC Auto chairman Tan Siow Chua started his business as a private transport provider in 1977, he had only one bus and no employees.

Over the next 10 years, he grew his fleet size to 40 buses and employee count to 220.

Thereafter, he developed an interest in moving up the value chain into bus design and bus-body building. In 1996, he incorporated SC Auto to pursue these value-added areas of business and has been building up the company's capabilities since.

Senior Minister of State for Trade and Industry Koh Poh Koon, the guest of honour at the launch of SC Neustar, said: "SC Auto's journey of transformation and growth is precisely what the government envisions for our local enterprises as we move into the future economy."

He highlighted the company's focus on quality over price point, and noted that SC Auto has developed more than 200 bus designs and trademarks registered worldwide.

Dr Koh also lauded the company's efforts to raise the skills level of its employees and automate work processes such as the use of robotic welding systems.

The company is looking to reach S$100 million in annual revenue in three to four years. SC Auto marketing manager Irin Chen said that while eventual plans such as a public listing could help the company to reach that revenue target, it is focused on stabilising its operations processes first.

The company currently has research and development capabilities in Singapore, manufacturing in Singapore and Myanmar, and sales offices in Hong Kong and Myanmar. It may look into expanding to Australia, other Asean countries and even Europe.