Volvo Group to Invest ₹1,400 Crore in Karnataka to Expand Manufacturing.

Volvo Group has announced a ₹1,400 crore investment to expand its manufacturing operations in Karnataka, reinforcing the state’s position as a key hub for clean mobility and industrial growth.

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

The expansion is expected to significantly boost Karnataka’s manufacturing sector, creating over 2,000 direct jobs and increasing exports. The Hosakote facility’s production capacity will rise from 3,000 to 20,000 trucks and buses annually, catering to both domestic and international markets.

Chief Minister Siddaramaiah highlighted the state’s 25-year partnership with Volvo, praising its role in transforming Karnataka’s public transportation with high-quality buses. He reaffirmed the government’s commitment to supporting Volvo’s operations, ensuring local employment, and driving economic growth.

Volvo Group CEO Martin Lundstedt emphasized the strategic importance of the investment, stating that the expanded facility would strengthen India’s role in the global supply chain. “This expansion will enable us to manufacture up to 20,000 buses and trucks per year, meeting market demand and contributing to job creation,” he said.

The new Hosakote hub will join Volvo’s existing manufacturing units in Peenya, Hosakote, and Dharwad. Bengaluru also hosts Volvo’s Global Competence Centre (GCC), which employs over 3,500 professionals across R&D, IT, procurement, logistics, and finance, making it the company’s fourth-largest global site. With an annual revenue exceeding $50 billion, Volvo continues to expand its footprint in India’s mobility and industrial sectors.

HBL