China’s Xiaomi recently dominated the Indian smartphone market for three consecutive years. Samsung loses the top spot. It has been played out by the Government of India’s rule book to support domestic manufacturing; instead of shipping smartphones from India to its home country China, the company said in an announcement on Thursday that it now has two new supply chain partners, BYD and DBG. Is increasing production in India by adding.
The move comes at a time when the Indian government is putting more pressure on Chinese tech companies. Along with Tiktok, dozens of other popular Chinese apps, It was banned in India. National security concerns last June.
So far, hardware companies have not been largely affected, but deteriorating Indo-China relations will not bode well for Chinese companies that are harassing Indian consumers. Xiaomi and its Chinese rivals Vivo, Oppo, and Oppo’s Realty jointly command 64% of the Indian market In the third quarter of 2020.
Perhaps this is when Chinese firms demonstrated to the Indian government how they could contribute to the local economy. Under the new production partnership, Xiaomi will be able to increase its output in India significantly.
The interaction with BYD and DBG also reflects the growing trend of Chinese manufacturers planting plants abroad to counter returning labor costs and increasing hostile trade policies against China. Are BYD is China’s largest electronics car maker with a long history of manufacturing electronics parts, while DBG has been a major supplier to Chinese telecom firms, including Huawei. DBG has set up a manufacturing plant in Haryana, and Xiaomi’s local production has increased by about 20%. The BYD facility in Tamil Nadu is set to be launched by H1 this year.
Before its deals with BYD and DBG, Xiaomi was already making 99% of India’s smartphones through Apple’s long-time contract maker, Taiwanese giant Foxconn, and California-based Flex.
Xiaomi also emphasized that it sourced locally, buying motherboards, batteries, chargers, and other parts from domestic suppliers such as Sunny India and NVT, making up more than 75% of smartphones’ value.
Separately, Xiaomi’s India business has rolled out a new partner, Ohio-based Radiant Technology, to build its smart TVs, a best seller in India. Dixon, a local electronics company, currently makes its own smart TVs.
Shiomi’s localization efforts had resulted in a strong team of 60,000 in India when it first arrived in the country, including production, sales, and logistics staff. The company prides itself on promoting local employment. As Manu Kumar Jain, Managing Director, Shiomi India, pointed out in today’s announcement, the company added 10,000 employees to India last year. “As organizations reduced their workforce, we focused on mobilizing building blocks – our staff – for our growth in the Indian market. ”