comscore Xiaomi planning on manufacturing phones in India: Reports

Xiaomi planning on manufacturing phones in India: Reports


Since making its debut in the Indian market earlier this year, Xiaomi has been one of the most-talked about smartphone companies in the country. Having sold nearly 800,000 smartphones in the country, the Chinese company is now looking at manufacturing its phones in India, Economic Times reports. Also Read - Xiaomi 13 series with MIUI 14 to launch on December 1: Check specs

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Xiaomi is currently in talks with its manufacturing partners in China including Foxconn and Inventec to extend their manufacturing capabilities to India. We’ve started talking to some potential partners to see if they can assemble the phones for us in India, Manu Jain, head of Xiaomi’s India operations told the publication. Also Read - Indian govt reintroduces Digital Personal Data Protection draft bill, could allow some cross-border data transfer

We are beginning to explore, along with these partners, what are the regulatory constraints, the financials around it, how much investment we need to make, tax implications of setting up a manufacturing plant as it is far more complicated,” he added. “It will be the longest lead-time activity that we will do in India.

Per Bloomberg, this is a part of Xiaomi s new strategy, wherein it will focus on its current markets rather than expand into new markets. It has put its plans for expanding into 10 new markets on a hold for now, so in essence launches in Thailand, Russia, Mexico, Brazil, and Turkey have been pushed to next year.

This isn t the first time we are hearing about Xiaomi s plans of manufacturing its phones in India. Last month the Wall Street Journal reported the same thing, and more recently the company s chairman Lei Jun reiterated how important the Indian market was, and how it was becoming the largest overseas market for them.

One of the reasons for the shifting of base to India as Barra explains is the demand. “We’re shipping absurd quantities into India,” Barra told the publication. We went from shipping 50,000 a week into India to 200,000.

The company has even had a look at Nokia s now defunct Chennai plant to maybe use it for its manufacturing. But Xiaomi s Hugo Barra says, We have looked at it (Nokia plant), not too closely though. There would still be quite a few things missing.

Xiaomi has been seeing a meteoric rise having become the number one company in China, and also breaking into the top-five smartphone makers in the world. But the company s new strategy will temporarily slow its pursuit of its chief rivals like Samsung and Apple, and its plans of becoming the number one smartphone company in the world.

  • Published Date: November 25, 2014 1:16 PM IST
  • Updated Date: November 25, 2014 1:18 PM IST
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