Volvo to Invest Rs 1,400 Crore in Karnataka

Bengaluru, Feb 13 (PTI) Swedish-based bus and truck manufacturer Volvo has decided to expand its manufacturing plant in Hoskote near Bengaluru city and has announced an investment of Rs 1,400 crore.


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 on the agreement during the Invest Karnataka-2025.

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.