Volvo Group's Rs 1,400 Crore Expansion in Karnataka to Create 2,000 Jobs, Boost Exports
Hosakote emerges as a global manufacturing hub as Volvo strengthens its footprint in India, set to produce 20,000 trucks and buses annually.
Pramod
Bengaluru - Karnataka’s industrial sector is set for a major boost as Volvo Group, a global leader in trucks, buses, and sustainable mobility solutions, announced a massive Rs 1,400 crore expansion in the state. This strategic investment will establish Volvo’s fourth international manufacturing hub in Hosakote, Bengaluru, creating over 2,000 direct jobs and reinforcing Karnataka’s position as a premier destination for clean mobility and industrial growth.
The Memorandum of Understanding (MoU) was signed at the Chief Minister’s official residence, ‘Cauvery,’ in the presence of Karnataka Chief Minister Siddaramaiah and Large and Medium Industries Minister MB Patil. Industries Department Principal Secretary S. Selvakumar and Volvo India MD Kamal Bali formalized the agreement, marking a significant milestone in Karnataka’s industrial roadmap.
Transforming Karnataka into a Manufacturing Powerhouse
With this expansion, Volvo’s production capacity at the Hosakote facility will skyrocket from 3,000 to an impressive 20,000 trucks and buses annually, catering to both Indian and global markets. The move is expected to significantly boost exports and solidify India’s standing in the global supply chain.
Chief Minister Siddaramaiah, speaking at the event, highlighted Volvo’s 25-year journey in Karnataka, emphasizing the company’s role in revolutionizing the luxury bus sector. He assured full government support for Volvo’s growth, underlining the commitment to job creation and regional economic development.
Volvo’s Vision for India
Volvo Group CEO Martin Lundstedt lauded Karnataka’s favorable business environment, stating, “This expansion will not only enhance our production capacity but also strengthen India’s role in the global supply chain. Manufacturing up to 20,000 trucks and buses annually will allow us to meet both domestic and international market demands while contributing significantly to employment generation.”
Hosakote will join Volvo’s existing manufacturing units in Peenya, Hosakote, and Dharwad, further reinforcing Bengaluru’s status as a critical node in the company’s global network. Additionally, Volvo’s Global Competence Center (GCC) in Bengaluru, which employs over 3,500 professionals in R&D, IT, logistics, procurement, and finance, will see further integration with the new manufacturing hub.
Economic Impact & Future Prospects
With Volvo’s annual revenue exceeding $50 billion, this expansion aligns with its broader strategy to scale up operations in India, one of the fastest-growing automotive markets globally. The investment is expected to attract ancillary industries, drive technological advancements, and contribute to Karnataka’s reputation as a global manufacturing hub.
Additional dignitaries present at the MoU signing included LK Atheeq, Additional Secretary to the Chief Minister, and Industries Department Commissioner Gunjan Krishna.
This milestone investment by Volvo reaffirms Karnataka’s leadership in sustainable mobility and economic development, setting the stage for long-term growth and job creation.
