Hosakote Manufacturing Hub to Create 2,000 Direct Jobs

Volvo Group Expands Manufacturing Footprint in Karnataka with Rs 1,400 crore Investment

Bengaluru Express
Bengaluru, Feb. 13: In a move that marks a pivotal moment for Karnataka’s industrial landscape, Volvo Group, the global leader in trucks, buses, construction equipment, and sustainable mobility solutions, has announced the expansion of its manufacturing operations in the state.

In an event held at Chief Minister’s official residence ‘Cauvery’ on Thursday, the company signed a Memorandum of Understanding (MoU) with the Government of Karnataka in presence of Large and Medium Industries Minister MB Patil to set up its 4th International Manufacturing Hub in Hosakote, Bengaluru, backed by a strategic investment of Rs 1,400 crore. Industries Department Principal Secretary S.Selvakumar and Kamal Bali, MD. Volvo India, signed the agreement.

This bold expansion will catapult Karnataka into the forefront of global manufacturing, reinforcing its role as India’s prime destination for clean mobility and industrial growth. The new facility is expected to create over 2,000 direct jobs, significantly 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 a massive 20,000 trucks and buses annually, catering to both Indian and international markets.

Karnataka Chief Minister Siddaramaiah, speaking at the MoU signing ceremony at his official residence, underscored the state’s long-standing partnership with Volvo, which has thrived for 25 years. He praised 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 emphasized that 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 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.

The Chief Minister Siddaramaiah reaffirmed that Volvo’s expansion is a testament to Karnataka’s leadership in clean mobility and sustainable manufacturing, promising continued support to foster further growth in the state.

LK Atheeq, Additional Secretary to Chief Minister, and Industries Department Commissioner Gunjan Krishna were present.

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