Volvo expands Bengaluru plant with Rs 1,400 crore investment, to create 2,000 direct jobs

Sweden-based commercial vehicle manufacturer Volvo has announced an expansion of its manufacturing plant in Hoskote, near Bengaluru, with an investment of Rs 1,400 crore. The move is expected to generate over 2,000 direct jobs.

The agreement was signed on Thursday in the presence of Karnataka Chief Minister Siddaramaiah at his official residence, ‘Kaveri.’ Minister for Large and Medium Industries M B Patil, Industries Department Principal Secretary Selvakumar, and Volvo India Managing Director Kamal Bali were also present during the signing at the Invest Karnataka-2025 summit.

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Siddaramaiah praised Volvo’s contribution to Karnataka’s industrial growth over the past 25 years, highlighting its reputation for high-quality buses. He assured the company of government support and urged Volvo to prioritize local employment.

Volvo CEO Martin Lundstedt stated that the company currently produces 3,000 trucks and buses annually across its facilities in Peenya, Hoskote, and Pithampur. With the Hoskote plant’s expansion, production capacity will surge to 20,000 units per year, strengthening India’s role in the global supply chain and meeting growing local demand.

Bengaluru serves as Volvo’s fourth-largest international hub, housing a Global Capacity Centre that employs over 3,500 professionals in R&D, procurement, logistics, and financial services.

The company emphasized that the expansion will boost exports and enhance India's manufacturing footprint in the global market.