Volvo Group has announced a ₹1,400 crore investment to expand its manufacturing footprint in Karnataka. The company signed a Memorandum of Understanding (MoU) with the state government to establish its fourth international manufacturing hub in Hoskote, reinforcing Karnataka’s position as a key automotive and industrial manufacturing hub.
The expansion will increase production capacity from 3,000 to 20,000 trucks and buses annually, catering to both domestic and international markets. This move is expected to create over 2,000 direct jobs, contributing significantly to employment generation and industrial growth in the region.
Volvo’s Commitment to India’s Automotive Sector
Volvo Group CEO Martin Lundstedt emphasized that this expansion will not only enhance the company’s production capabilities but also bolster India’s presence in global supply chains.
“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,” he stated.
Volvo’s investment aligns with the Make in India initiative, which aims to transform the country into a global manufacturing powerhouse. By increasing local production, the company is also aiming to strengthen export capabilities, making India a vital hub in its global operations.
Also read: Bharat Forge, Liebherr to Set Up Aerospace Plant in Pune
Boosting Karnataka’s Industrial Growth
Karnataka has been a preferred destination for automobile and industrial investments, housing several key manufacturing units. The Hoskote facility will serve as a key node in Volvo’s global operations, joining the company’s existing plants in Peenya, Hoskote, and Dharwad.
With Karnataka’s strong infrastructure, skilled workforce, and pro-business policies, the state continues to attract major foreign direct investments (FDI) in automobiles, aerospace, and heavy machinery sectors. This latest investment from Volvo will strengthen Karnataka’s position as a premier destination for automotive manufacturing and exports.
By expanding its Indian operations, Volvo is not only boosting local production but also contributing to the growth of the commercial vehicle sector, advancing job creation, and enhancing the state’s role in global supply networks. The new facility is expected to become operational in the coming years, further solidifying India’s standing as a global hub for high-quality vehicle manufacturing.
