Chinese Companies Boost ‘Make in India’ by Exporting Smartphones
Industry officials say Chinese firms plan to export phones and electronic devices to the US from India. (AI image)
Chinese smartphone and electronics makers have begun exporting ‘Made in India’ products. These goods are heading to West Asia, Africa, and the United States. Traditionally, China and Vietnam supplied these regions. This change follows government support and growth in local production.
A New Strategy for Chinese Brands
Chinese brands in India are shifting their focus. They used to concentrate on domestic sales. Now, they’re looking at exports. This change comes after increased government oversight of Chinese firms following the 2020 border disputes. The government has been pushing for local manufacturing and exports.
Government Support and Local Partnerships
The government has guided Chinese companies to:
- Set up local manufacturing with Indian partners
- Build locally-owned distribution networks
- Focus on exports
- Appoint Indian nationals to senior positions
Export Success Stories
Oppo Mobiles India made its first foreign earnings of ₹272 crore in FY24 through exports. Realme Mobile Telecommunications (India) earned ₹114 crore. These numbers come from their regulatory filings on May 12. The companies haven’t filed their FY25 financial statements yet.
Major Changes for Chinese Companies
Hisense Group, a big Chinese TV and home appliances brand, plans to start exports. They will send locally made products to West Asia and Africa in early 2024.
Ajay Singhania, managing director of Hisense’s local manufacturing partner Epack Durable, told analysts about a new ₹100-crore facility in Sri City for Hisense. This facility will handle exports and copy the designs and processes of Hisense’s China plant.
Lenovo Group plans to export servers and laptops from India. Motorola, owned by Lenovo, already exports devices to the US. Dixon Technologies, which makes Motorola phones, is increasing its production by 50% to meet export demands.
Dixon Technologies also makes smartphones for Transsion Holdings, a Chinese company that owns Itel, Tecno, and Infinix brands. Transsion has started exports to African markets.
Industry sources say Haier, a big consumer electronics and appliances maker, is looking into export options.
Several smartphone makers, including Oppo, Vivo, Realme, OnePlus, and Xiaomi, are working with Indian companies and have started exports. However, regulatory filings for Xiaomi, Midea, and OnePlus in FY24 didn’t show any foreign earnings from exports.
It’s worth noting that Chinese companies in India haven’t yet appointed Indian nationals as managing directors or chief executives.
Impact of Production-Linked Incentive (PLI) Scheme
India’s export push gets support from the production-linked incentive (PLI) scheme. While Chinese brands usually aren’t part of PLI, their manufacturing partners, like Dixon, are.
A senior executive from a top third-party manufacturing firm said the government has been urging Chinese companies to export from India. He thinks the remaining Chinese brands will start exports soon.
Diversifying the Supply Chain
Diversifying the supply chain has become important due to rising geopolitical tensions and possible US tariffs. Industry officials say Chinese firms are thinking about exporting phones and electronic devices to the US from India. This move depends on the results of US trade talks with both India and China.
Right now, Dixon facilities make Motorola smartphones for Lenovo’s US exports.
Smartphone Exports Are Growing
In FY25, smartphones became India’s top export item. Overseas shipments went up by 55% year-on-year to $24.14 billion. Apple led with iPhone exports over $17.4 billion, while Samsung made up the rest.
