Top Chinese smartphone manufacturers are in talks with Indian contract manufacturers to take advantage of the latter’s approval status for its production-linked incentive (PLI) plan. This is in the midst of a significant campaign by the Indian government to encourage smartphone manufacturers in Asia’s neighbouring countries to include more domestic firms in their manufacturing ecosystem.
Leading Chinese smartphone manufacturers, including Xiaomi, Oppo, Vivo, and Transsion, are reportedly in talks with PLI-approved companies like Bhagwati (Micromax), Lava International, UTL Neolync, Optiemus Electronics, and Dixon Technologies.
Bhagwati Products Ltd., a division of Micromax, is in advanced negotiations with two Chinese companies, including Transsion, to have their handsets produced locally for both the domestic market and exports.”Discussions with two Chinese corporations are at a high level. Thus, once that occurs, we will be able to reach 200–300% of our PLI plan target, according to Rajesh Agarwal, director of Bhagwati Products, in an interview with ET. The Chinese brand names weren’t mentioned by him.
Xiaomi, which gets the majority of its sales from the sub-Rs10,000 smartphone market, is reportedly in negotiations with Indian contract manufacturers as well, according to a senior industry official. The business, which now has Bharat FIH, a Foxconn subsidiary, produce its cellphones, declined to comment.
The distribution of the incentives provided under the PLI plan is a major discussion issue in the discussions. “The contract maker receives incentives. The question is how much information will be provided with the customer, according to a different business expert.
Currently, Bhagwati’s two facilities in Rajasthan and Hyderabad can produce about 2 million phones and 1 million LED TVs each month. It is expanding these facilities’ capacities while also collaborating with regional partners constantly to strengthen the ecosystem and provide job opportunities in the nation.”To increase employment possibilities and introduce a component ecosystem to India, the government is working with all domestic and international businesses. Additionally, it wants them to turn India into a smartphone export centre, according to Bhagwati’s Agarwal.
