Xiaomi announced it’ll be opening three new manufacturing facilities in India to boost its local presence and supply chain. Two of them shall be dedicated to smartphones while the third ones for smart TVs.
Xiaomi’s India Head and Global Vice President, Manu Kumar Jain, said that 99 percent of its smartphones sold in India and 100 percent of its televisions will now be manufactured within the country.
he said that Xiaomi has been assembling phones and TVs in India for a while now. But many components are still imported, and the company is trying to reduce this as much as possible. Xiaomi has partnered with DBG India, and its plant in Haryana is already functional.
The second facility will be set up in Tamil Nadu by Chinese electronics maker BYD. The two plants are strategically located to ensure the supply chain runs smoothly across the country. For the smart TVs, Xiaomi has tied up with Hyderabad-based television manufacturer Radiant.
The Chinese phone maker has already tied up with Foxconn and Flex for smartphones and Dixon Technologies for televisions. Jain even went on to say that a vast majority of the phone components that include printed circuit board assembly (PCBA) and sub-boards, chargers and battery, back panels are domestically manufactured in the country.
Jain also proudly said in the briefing that Xiaomi now employs 60,000 people in India via its many facilities, retail units, and back-end operations. Xiaomi’s investment in India isn’t surprising because it has been serious about the market for years and has solidified its standing as an indisputable leader.
The Indian government recently kicked-off a billion-dollar scheme to encourage local sourcing. Also dubbed Production Linked Incentive (PLI), the government is ready to offer subsidies and tariff reliefs for companies that are open to localization. The program has worked wonders for companies on the electronics front, and thousands of jobs are being generated.
Despite competition from Samsung, realme, OPPO, and vivo, the company has largely remained unscathed. However, the brand is still in warm waters due to geopolitical instability between India and China. The anti-China sentiment has affected many chinese players like Huawei, TikTok, Alibaba, and more. But Xiaomi and other mobile phone markers have avoided controversy by amalgamating with the local market and the workforce.