In a major boost to India’s manufacturing sector Volvo Group has announced the expansion of its operations in Karnataka by setting up its 4th international manufacturing hub in Hosakote, Bengaluru. This strategic investment of Rs 1,400 crore is expected to create over 2,000 direct jobs significantly enhance exports and strengthen India’s role in the global supply chain.
A Strategic MoU for Expansion
The company signed a Memorandum of Understanding (MoU) with the Government of Karnataka in the presence of large and medium industries minister MB Patil. The agreement was officially signed by Industries Department Principal Secretary S Selvakumar and Kamal Bali, Managing Director, Volvo India.
The expansion at the Hosakote facility will increase production capacity from 3,000 to 20,000 trucks and buses annually, catering to both domestic and international markets.
Government and Industry Leaders Speak
Karnataka Chief Minister Siddaramaiah emphasized the state’s 25-year-long partnership with Volvo recognizing its role in bringing high-quality luxury buses to the region. He assured continued state support for Volvo’s operations reinforcing job creation and economic growth in Karnataka.
Volvo Group CEO Martin Lundstedt highlighted the significance of the investment noting that the facility’s expansion will boost production capacity and firmly establish India and Karnataka in the global supply chain.
“This expansion will enable us to manufacture up to 20,000 buses and trucks per year, meet local market demands, and contribute significantly to job creation,” said Lundstedt.
Strengthening Volvo’s Global Presence
The new Hosakote facility will become a key component of Volvo’s global operations joining its existing manufacturing units in Peenya, Hosakote, and Dharwad. Bengaluru is also home to Volvo’s Global Competence Centre (GCC) which employs over 3,500 professionals in R&D, IT, procurement, logistics, and finance, making it Volvo’s 4th-largest global site.
With annual revenue exceeding $50 billion Volvo’s continued investment in Karnataka is part of a broader strategy to expand its footprint in the fast-growing Indian market.
Key Officials Present at the Meeting
The official discussions were attended by LK Atheeq, Additional Secretary to the Chief Minister, and Gunjan Krishna, IAS, Commissioner for Industrial Development and Director, Department of Commerce and Industries.
With this major investment Volvo is poised to further drive innovation, employment, and economic growth in India’s commercial vehicle sector.
