Volvo Group to invest ₹1,400 crore in Karnataka, expands manufacturing operations

Volvo Group, a global player in trucks, buses, construction equipment, and sustainable mobility solutions, has announced the expansion of its manufacturing operations in Karnataka with a ₹1,400 crore investment.

In an event held at the Chief Minister’s official residence, Cauvery, on Thursday, the company signed a Memorandum of Understanding (MoU) with the Government of Karnataka in the presence of Large and Medium Industries Minister MB Patil to set up its 4th International Manufacturing Hub in Hosakote, Bengaluru. Industries Department Principal Secretary S Selvakumar and Kamal Bali, MD. Volvo India signed the agreement.

This expansion is said to catapult Karnataka into the forefront of global manufacturing, reinforcing its role as India’s prime destination for clean mobility and industrial growth. It is expected to create over 2,000 direct jobs, boost exports, and enhance India’s position in the global supply chain. 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.

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CM Siddaramaiah, speaking at the MoU signing ceremony, underscored the State’s longstanding partnership with Volvo, which has thrived for 25 years. He highlighted the company’s role in bringing high-quality buses to the State, particularly in the luxury bus segment, which has become synonymous with the name “Volvo” for many Karnataka residents. He further emphasised the State government is committed to supporting Volvo’s operations, ensuring job creation for locals, and fostering economic growth in the region.

Volvo Group CEO Martin Lundstedt highlighted the importance of this investment, noting that the Hoskote facility’s expansion will increase production capacity and 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,” he said.

The new Hosakote hub will serve as a key node in Volvo’s global operations, joining the company’s existing manufacturing units in Peenya, Hosakote, and Dharwad. Bengaluru region is also home to Volvo’s Global Competence Centre (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. The company’s annual revenue now surpasses $50 billion.