Volvo Group to invest Rs 1,400 cr in Karnataka to establish international manufacturing hub

Swedish Trucks and bus manufacturing giant Volvo Group has announced a Rs 1,400-crore investment to expand its manufacturing operations in Karnataka.

The company signed a Memorandum of Understanding (MoU) with the Karnataka government on February 13 to establish its fourth international manufacturing hub in Hosakote, Bengaluru.

The agreement was formalised at Chief Minister Siddaramaiah’s official residence, ‘Cauvery,’ in the presence of Large and Medium Industries Minister MB Patil. The MoU was signed by Industries Department Principal Secretary S. Selvakumar and Volvo India Managing Director Kamal Bali.

"The new facility is expected to create over 2,000 direct jobs and significantly boost production capacity. With this expansion, the Hosakote plant will increase its output from 3,000 to 20,000 trucks and buses annually, catering to both domestic and international markets," the firm said in a media statement.

Speaking at the event, Chief Minister Siddaramaiah highlighted Volvo’s 25-year-long presence in Karnataka and its contribution to the state’s transportation sector, particularly in the luxury bus segment. He reaffirmed the government’s support in ensuring job creation and economic growth through this expansion.

"This expansion will strengthen India’s role in the global supply chain while boosting the company’s production capabilities," said Volvo Group CEO Martin Lundstedt. "With annual revenue exceeding $50 billion, Volvo’s expansion aligns with its strategy to strengthen its presence in India’s fast-growing market".

"This expansion will enable us to manufacture up to 20,000 buses and trucks per year, meeting local demand and contributing significantly to employment generation," he added.

The new Hosakote hub will be part of Volvo’s larger footprint in Karnataka, which already includes facilities in Peenya, Hosakote, and Dharwad. Additionally, Bengaluru houses Volvo’s Global Competence Center (GCC), employing over 3,500 people in R&D, IT, procurement, logistics, and finance.

The MoU signing was also attended by LK Atheeq, Additional Secretary to the Chief Minister, and Gunjan Krishna, Commissioner for Industrial Development and Director, Department of Commerce and Industries.