April 22, 2021

The WebShore

Edge of Knowledge

Xiaomi eyes govt’s PLI scheme boosts India phone production capacity by 20%

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New Delhi
: Xiaomi is expanding its phone production capacity in India by 20% as the Chinese electronics giant is eying to benefit from the government’s production-linked incentive (PLI) scheme by sourcing devices from local contract manufacturers that may include companies such as Optiemus Infra and Dixon, the Times of India mentioned in a report.

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Xiaomi India MD Manu Jain said the company remains bullish on growth in India despite tensions between India and China on the border and trade front. “The demand for smartphones and smart TVs is robust and we are expanding in both the categories,” the publication quoted Jain as saying.

Xiaomi has been a top player in the smartphone business. In 2020, the company remained India’s top smartphone seller, with a 26% market share, data from research firm Counterpoint showed. But of late it has been facing stiff competition from Korean player Samsung and fellow Chinese makers like Vivo, Realme, and Oppo. Demand for smartphones has been going strong with the adoption of digital products picking up after the Covid lockdown and work, educate and entertain at-home phenomenon, the daily quoted Jain as saying. 

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The Xiaomi MD further said that it is adding two new manufacturing partners for phones in India — BYD in Tamil Nadu and DBG in Haryana. This is in addition to the original suppliers Foxconn and Flex. He said nearly 100% of the phones are made in India, and now it is undertaking an exercise to localize components sourcing through manufacturing partners.

At present, none of the Chinese companies are getting any incentive under the PLI scheme. Jain said Xiaomi is exploring to get a slice of the benefits through companies that are contract manufacturers and have been awarded the scheme that gives a 4-6% incentive on production value.

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“I personally believe that PLI is a great scheme and a great effort by the government to ensure that India emerges as a global manufacturing hub,” Jain said.

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Hardik Gandhi

Me Hardik Gandhi a Blogger, Web Developer Since 2014, CEO of Techno Disc Web Solution, also provides technical SEO and Graphics Design for Businesses of all Sizes.
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