From the last one year, we see a steady shift of smartphone manufacturing in India. With the ‘Make in India’ campaign, many companies started importing the individual part and started assembling in India. Before to this, many companies use to import the completely built devices from countries like China, Taiwan, and Vietnam. Though the devices are marketed as Make in India products, actually there are just assembled in India. We have even seen companies importing the package stickers and booklets from Chinese. As of now, the assembling units are creating a little number of jobs and once the few parts of the devices are started manufacturing in India, we can a major boost to the economy along with several new jobs.
The Chinese smartphone market has reached the saturation point, and the next big mobile market in the world is India. While there are many global and local brands in India, the entry of the Chinese players changed the Indian smartphone market. Before to this, the Indian smartphone brands used to sell the rebranded devices or import the completely build Chinese phones. Even now, most of the smartphones from Indian brands are from China. Many Chinese brands felt India as their second home as we share few similarities with them. The brands like Xiaomi offered smartphones with much better specifications than the other smartphones at the similar price range.
The brands like OPPO, Gionee, and Vivo has a great offline presence in the Indian market. OPPO and Vivo are already in the top 10 smartphone brands list in terms of market share in India. On the other hand, both these brands are placed in the top 5 global smartphone brands list. The next big thing for any smartphone brand in India is the local manufacturing. Brands like Lenovo, Xiaomi, and Gionee are using Foxconn factories to assemble their devices in India. Now the latest report suggests OPPO and Vivo will be investing Rs. 2,000 each for setting up their new manufacturing plants. Both the companies might get 200 acres of land in Greater Noida.
OPPO investment is already confirmed, where the Rs. 1,000 crores will come from the company itself while the other Rs. 1,000 will be brought from their vendors. On the other hand, the Vivo has some problems with the land which is said to be sorted out soon. OPPO will also build townships in the allocated land that can accommodate 30,000 people; these might be for the employees. While these manufacturing plants won’t show an immediate effect on the economy, they will bring a huge difference in the coming years. Just last month, world’s third largest and the Chinese number one smartphone brand, Huawei opened its manufacturing unit in partnership with Flex Telecom in Chennai. The company has started producing the Honor smartphones from this month.
Instead of just assembling, hope we can see a true Made in India smartphone with most of its parts manufacturing locally rather than importing from China.