Volvo Group has announced an investment of ₹1,400 crore to expand its manufacturing operations in Karnataka. The company signed a Memorandum of Understanding (MoU) with the Karnataka government on February 13 to establish its fourth international manufacturing hub in Hosakote, Bengaluru.
The agreement was inked in Chief Minister Siddaramaiah’s official residence, ‘Cauvery,’ in the presence of Large and Medium Industries Minister MB Patil. The MoU was signed between Industries Department Principal Secretary S. Selvakumar and Volvo India Managing Director Kamal Bali.
The new factory is set to provide over 2,000 direct job opportunities and raise production capacity to a great extent. The Hosakote factory’s capacity will be increased to 20,000 buses and trucks per annum from 3,000 per annum to cater to local and foreign demand.
Speaking at the event, Chief Minister Siddaramaiah highlighted Volvo’s 25 years of presence in Karnataka and its role in the transportation sector of the state, more precisely in the luxury bus business. He reaffirmed that the government was eager to help industrial expansion and employment generation through this expansion.
Volvo Group CEO Martin Lundstedt stated that this expansion will strengthen India’s role in the global supply chain while also boosting the company’s production capabilities. With annual revenue exceeding $50 billion, Volvo’s investment aligns with its long-term strategy to enhance its footprint in India’s rapidly growing market.
The new Hosakote hub will be part of Volvo’s larger presence in Karnataka, which already includes facilities in Peenya, Hosakote, and Dharwad. Additionally, Bengaluru houses Volvo’s Global Competence Center (GCC), which employs over 3,500 people in research and development, IT, procurement, logistics, and finance.
The MoU signing was also attended by LK Atheeq, Additional Secretary to the Chief Minister, and Gunjan Krishna, Commissioner for Industrial Development and Director, Department of Commerce and Industries.
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Source: Moneycontrol
