Volvo Group to Set Up Global Manufacturing Hub in Karnataka

Bengaluru, Feb 14 (KNN) Volvo Group, the Swedish commercial vehicle manufacturer, announced on Thursday a significant expansion of its operations in Karnataka, India, with a fresh investment of Rs 14,000 crore (approximately USD 1.7 billion).

The company signed a Memorandum of Understanding with the Karnataka government to establish its fourth international manufacturing hub near Hosakote, Bengaluru.

The agreement was finalised in the presence of Karnataka Chief Minister Siddaramaiah, Industries Minister M B Patil, and Volvo India Managing Director Kamal Bali.

The expansion will dramatically increase the Hosakote facility's production capacity from 3,000 to 20,000 trucks and buses annually. This enhanced capacity will serve both domestic and international markets, creating over 2,000 direct jobs in the process.

Volvo Group CEO Martin Lundstedt emphasised the strategic importance of this investment, stating, "This expansion will enable us to meet local market demands and contribute significantly to job creation while strengthening India's position in the global supply chain."

The new facility will complement Volvo's existing manufacturing network in Karnataka, which includes units in Peenya, Hosakote, and Dharwad.

The Bengaluru region has already established itself as a crucial hub for Volvo, hosting the company's Global Competence Center (GCC) that employs more than 3,500 professionals in various sectors including R&D, IT, procurement, logistics, and finance.

The investment represents a significant vote of confidence in India's growing automotive sector. With Volvo Group's annual revenue exceeding USD 50 billion globally, this expansion aligns with the company's strategy to strengthen its presence in India's rapidly expanding market while potentially establishing Karnataka as a major export hub for commercial vehicles.

The project is expected to enhance India's manufacturing capabilities and boost its position in the global automotive supply chain.

(KNN Bureau)