Scania-Vabis vehicles had already been assembled in Brazil by a local company called Vemag ( Veículos e Máquinas Agrícolas S.A.) for several years. On, a new engine plant was inaugurated in the Ipiranga district of São Paulo, and from June 1960, Scania-Vabis do Brasil assembled all vehicles themselves. (today known as Scania Latin America Ltda.) was established and started assembling some vehicles themselves in 1958. On 2 July 1957, Brazilian subsidiary Scania-Vabis do Brasil S.A. Brazil was becoming a notable market for heavy trucks, and was also dependent on inter-urban buses, with particular requirement for Brazil's mountainous roads which became nigh-on impassable at times. Until now, all Scania-Vabis production had been carried out solely at Södertälje, but the 1960s saw the need to expand production overseas. The 1960s saw Scania-Vabis expanding its production operations into overseas locations.
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