Despite India’s denial of any plan to limit China-based smartphone vendors’ presence in the low-end market segment, The Economic Times, citing sources, has reported that India is collecting suggestions to build a fair and free competition environment by targeting Chinese vendors.
According to The Economic Times, the suggestions include mandatory manufacturing joint ventures with local firms, creating a trusted source list, leveraging the Bureau of Indian Standards, pushing for exports, and partnering with global giants to create an Indian mobile operating system. These suggestions are expected to be submitted to the Indian government in the first week of September.
Business Standard also quoted sources saying that mobile phones manufactured by Chinese vendors in India have a value addition of just 12-18%, despite Chinese smartphones accounting for most of India’s market. Furthermore, Chinese smartphone manufacturers export far fewer phones than Apple, creating little economic benefit for India. Therefore, India’s ministry of electronics and information technology has asked Chinese device makers to push exports from India and bolster their supply chain in the country, according to the report.
JW Insights quoting sources reported that Oppo handed over the mobile phone distribution rights to its subsidiary in India and has been posting losses since operating in India for seven years. The Indian authorities believe Oppo transferred its profits from India to China.
Madhav Sheth, CEO of Realme India, said in an interview with The Economic Times that he had been informed of the developments that the Indian government would target Chinese smartphone vendors six months ago, adding that he knew what the Indian government asked for was compliance, creating an ecosystem, and pushing for exports, and Realme has done all the above.
Sheth told The Economic Times that Realme had exported 200,000 smartphones from India in the first half of 2022. In early August, Oppo announced a US$60 million Project Vihaan to strengthen India’s supply chain, encourage micro, small, and medium-sized companies, and increase exports from India. Vivo told PTI in May that it will start exporting made-in-India phones by the end of 2022.
According to The Economic Times, Xiaomi deferred its India export plan in March 2021 due to booming domestic demand for smartphones. Volza data shows that as of March 2022, Xiaomi had exported more than 20,000 phones to UAE, Bangladesh, Bhutan, and Nepal. Still, The Daily Star reported that Xiaomi has partnered with DBG Technology to set up a mobile assembly plant in Gazipur, Bangladesh, which may lead to fewer Xiaomi exports from India to Bangladesh.
Chinese vendors have a strong presence in India’s handset market.
Credit: AFP
