Volvo to set up 4th global manufacturing hub in Hosakote with Rs 1,400 cr

Volvo Group, the global leader in trucks, buses, construction equipment, and sustainable mobility solutions, has announced the expansion of its manufacturing operations in Karnataka.

 

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, backed by a strategic investment of Rs 1,400 crore. Industries department principal secretary S Selvakumar and Kamal Bali, managing director, Volvo India, signed the agreement.

 

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 increase from 3,000 to 20,000 trucks and buses annually, catering to both Indian and international markets.

 

Karnataka chief minister Siddaramaiah mentioned the state’s long-standing partnership with Volvo, which has thrived for 25 years. He acknowledged the company’s role in bringing high-quality buses to the state, particularly in the luxury bus segment. He further emphasised 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 Hosakote 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 and 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 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. 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.

 

LK Atheeq, additional secretary to the chief minister, and Gunjan Krishna, IAS, commissioner for industrial development and director, department of commerce and industries, were also present in the meeting.