The Swedish major Volvo Group, the manufacturer of trucks, buses, and construction equipment, will invest ₹1,400 crore in Karnataka with the expansion of its manufacturing operations in the state.
The company has signed a Memorandum of Understanding (MoU) with the Government of Karnataka and will set up its fourth international manufacturing hub in Hosakote, Bengaluru.
Volvo’s new facility is expected to create over 2,000 direct jobs and is expected to boost exports, capacity. Post the expansion, the production capacity at the Hosakote facility is set to soar, from 3,000 to 20,000 trucks and buses annually, catering to both Indian and international markets.
The new hub in Hosakote, Bengaluru is expected to serve as a key node in Volvo’s global operations, joining the company’s existing manufacturing units in Peenya, Hosakote, and Dharwad in Karnataka.
Bengaluru also has Volvo’s Global Competence Center (GCC), employing over 3,500 people in areas such as R&D, IT, procurement, logistics, and finance, making it the company’s fourth largest global site.
With an annual revenue of more than $50 billion, Volvo’s commitment to Karnataka is part of its broader strategy to increase its presence in the fast-growing Indian market.
On the sidelines of the MoU with the Volvo group Karnataka Chief Minister Siddaramaiah, said that Karnataka had a long standing partnership with Volvo, for the last 25 years and the company had been instrumental in bringing in high-quality buses to the state, particularly in the luxury bus segment.
Volvo Group CEO Martin Lundstedt highlighted the importance of this investment, and pointed out that Hoskote facility’s expansion will not only increase production capacity but also secure India and Karnataka’s place in the global supply chain.
"This expansion will enable us to manufacture up to 20,000 buses/trucks per year, meet local market demands, and contribute significantly to job creation," remarked Lundstedt.
