Google is significantly expanding its local manufacturing presence by assembling the Pixel 8 smartphones in India. This initiative, led by Wowtek Technology India—part of Bharat FIH and Hon Hai Technology Group (Foxconn)—is based in Tamil Nadu. This move marks a strategic step in Google’s efforts to increase its manufacturing footprint in the region.
Strategic Objectives and Future Plans
Google plans to transition the majority of its mobile device assembly to India over the next three years. Initially, the assembly will involve a limited number of phones, with the goal of ramping up production based on feedback and stabilization of the process. This approach is akin to Apple’s strategy, which has also significantly increased its assembly operations in India.
Production-Linked Incentives and Challenges
Bharat FIH, eligible for the Production-Linked Incentive (PLI) scheme, has yet to claim the 4-6 percent incentive due to unmet production and investment targets. Notably, Xiaomi, a major original equipment manufacturer, has reduced its partnership with Bharat FIH in favor of other manufacturers such as Dixon Technologies (India).
Foxconn’s Expansion and Job Creation
Foxconn is set to double its manufacturing capacity in India to accommodate both the increased assembly of iPhones and its new contract with Google. The company plans to create 100,000 direct jobs, an increase from the current 50,000 positions, underscoring its commitment to expanding operations in India.
Market Impact and Growth Projections
Despite holding a modest 0.25 percent share of the global mobile market as of early 2024, Google’s move to assemble phones in India is expected to enhance its market presence. In India, Google’s market share was 0.25 percent in 2023, reflecting a notable increase from the previous year. According to Counterpoint Research, Google’s assembly operations in India could lead to a 39 percent growth in 2024, with projected annual sales ranging between 600,000 and 700,000 phones.
