Last month, we came across a report stating that Xiaomi is planning to manufacture Mi TV sets in India. Xiaomi also reportedly partnered Taiwanese manufacturer Foxconn for local manufacturing. Now, the company has entered into another partnership with home grown consumer manufacturer, Dixon Technologies, an ET report stated.
With both the partnerships, Xiaomi aims to scale up the TV production, and manufacture about 55,000 Mi TV units on a monthly basis. The partnership with Dixon will mostly ensure an August launch “Make in India” Mi TVs. The production is expected to begin next month at Dixon’s Tirupati plant where 32-inch and 43-inch models will be manufactured. The 55-inch Mi TV 4 model, on the other hand, will be manufactured by Foxconn at its Chennai facility, where it manufactures Sony TVs as well.
The ET report further states that Xiaomi-Dixon deal will involve local production in “open-cell” route, where the company will import panels before assembling them in the TV set. Currently, India doesn’t have any panel fabrication facility, and all leading manufacturers such as LG and Samsung import panels in open cell state to save on import duties.
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Local manufacturing could also help Xiaomi lower the prices of Mi TV models in India by up to 20 percent. In a media roundtable interview in Bengaluru in April, CEO Lei Jun said by importing TVs they need to put 20 percent import tax long with insurance and logistics fees. By manufacturing in India, they can further bring down the price.
Currently, getting the Mi TV is difficult due to supply shortage, and with Make in India, the company can not only ramp up production, but also ensure TVs are easily available. Hopefully, the Make in India Mi TVs can be expected to go on sale around Diwali.