Swedish truck and bus manufacturer Volvo Group has announced a ₹1,400 crore investment to expand its manufacturing operations in Karnataka.
On 13 February, the company signed a Memorandum of Understanding (MoU) with the Karnataka government to establish its fourth global manufacturing hub in Hosakote, Bengaluru.
The agreement was formalized 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.
In a media statement, Volvo Group stated that the new facility will generate over 2,000 direct jobs and significantly enhance production capacity. With this expansion, the Hosakote plant’s annual output is expected to rise from 3,000 to 20,000 trucks and buses, serving both domestic and international markets.
Speaking at the event, Chief Minister Siddaramaiah emphasized Volvo’s 25-year legacy in Karnataka and its impact on the state’s transportation sector, particularly in the luxury bus segment. He also assured government support to drive job creation and economic growth through this expansion.
Martin Lundstedt, CEO of Volvo Group, said, “This expansion will strengthen India’s role in the global supply chain while boosting the company’s production capabilities.”
Martin added, “With annual revenue exceeding $50 billion, Volvo’s expansion aligns with its strategy to strengthen its presence in India’s fast-growing market.”
Martin added that this expansion will enable the company to manufacture around 20,000 buses and trucks per year, allowing them to meet local demand and contribute significantly towards employment generation.
The upcoming Hosakote hub will further strengthen Volvo’s presence in Karnataka, complementing its existing facilities in Peenya, Hosakote, and Dharwad. Additionally, Bengaluru is home to Volvo’s Global Competence Center (GCC), which employs over 3,500 professionals across R&D, IT, procurement, logistics, and finance.
The MoU signing ceremony was also attended by LK Atheeq, Additional Secretary to the Chief Minister, and Gunjan Krishna, Commissioner for Industrial Development and Director of the Department of Commerce and Industries.
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