Bengaluru: Swedish trucks and bus manufacturing giant Volvo Group on Thursday announced an expansion of its manufacturing operations in Karnataka with Rs 14,000 crore in fresh investments.
The company signed an MoU with the Karnataka Government in the presence of Chief Minister Siddaramaiah, Industries Minister M B Patil and Volvo India MD Kamal Bali on Thursday to establish its fourth international manufacturing hub near Hosakote on the outskirts of Bengaluru.
With the new investment, the production capacity at the Hosakote facility is set to soar from 3,000 trucks to 20,000 trucks and buses a year catering to both Indian and international markets, an official release said. The new facility is expected to create over 2,000 direct jobs, boost exports and enhance India's position in the global supply chain.
Volvo Group CEO Martin Lundstedt highlighted the importance of this investment, noting that the 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," said Lundstedt.
The new hub in Hosakote will serve as a key node in Volvo’s global operations, joining the company’s existing manufacturing units in Peenya, Hosakote, and Dharwad. The Bengaluru region is also home to 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 4th-largest global site.
With annual revenue now surpassing $50 billion, Volvo’s commitment to Karnataka is part of its broader strategy to increase its presence in the fast-growing Indian market.
