Invest Karnataka: Volvo to invest ₹1,400 crore at Hoskote near Bengaluru

Karnataka CM Siddaramaiah said on the occasion that Volvo came to the state 25 years ago, invested and started a change.

Sweden-based bus and truck manufacturer Volvo has decided to expand its manufacturing plant in Hoskote near Bengaluru city and has announced an investment of ₹1,400 crore.

Volvo CEO Martin Lundstedt said the company has manufacturing units in Peenya, Hoskote and Pithampur near Dharwad in Karnataka.(REUTERS)

The company expects that this investment would create over 2,000 direct jobs.

An agreement to this effect was signed 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.

Siddaramaiah said on the occasion that Volvo came to the state 25 years ago, invested and started a change. Now Volvo is another name for high-quality buses in the country.

The chief minister assured Volvo 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 CEO Martin Lundstedt said the company has manufacturing units in Peenya, Hoskote and Pithampur near Dharwad in Karnataka.

"Now we are manufacturing 3,000 buses and trucks here per year. With the expansion of the Hoskote plant, we can manufacture 20,000 buses and trucks per year. This capacity increase will also create jobs and further strengthen the position of India and Karnataka in the global supply chain. In addition, it will be possible to meet the local market needs smoothly," the Volvo CEO said.

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 USD 50 billion per annum, he added.

"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," a statement issued by the company said.

The three day event that was inaugurated by Defence Minister Rajnath Singh will conclude on Friday.