Volvo Company Agreement
Credit: Special Arrangent
Bengaluru: Swedish commercial vehicle giant Volvo, which is already one of the largest investors in Karnataka, has decided to expand its manufacturing plant in Hoskote with a fresh investment of Rs 1,400 crore.
Volvo signed an agreement to expand its facilities, on Thursday, in the presence of Chief Minister Siddaramaiah at his official residence ‘Kaveri’.
The process was completed in the presence of Minister for Large and Medium Industries M B Patil. Principal Secretary of Industries Department Selvakumar and Managing Director of Volvo India Kamal Bali signed the agreement during the Invest Karnataka-2025 summit.
“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,” said an official statement from the state government.
Speaking on the occasion of the agreement signing, Siddaramaiah said that Volvo came to the state 25 years ago, invested and started a change. He assured the bus and truck maker of providing necessary facilities and assistance. In return, the company should employ more Kannadigas. This can achieve both security and economic growth for the locals, he said.
Volvo global CEO Martin Lundstedt said the company has manufacturing units in Peenya, Hoskote and Pithampur near Dharwad in Karnataka.
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.
He said Bengaluru is Volvo's fourth largest international location. The Global Capacity Centre here employs over 3,500 people and handles Research and Development, procurement, logistics and financial services.
He told the chief minister that the company has a joint venture in Madhya Pradesh. The company's turnover has now crossed $50 billion per annum, he added.
The three day event that was inaugurated by Defence Minister Rajnath Singh will conclude on Friday.