China’s leading smartphone brands Xiaomi, Oppo, and Vivo are planning to export their phones made in India to other markets. The move comes amidst growing pressure from India as the country seeks to become a manufacturing hub.
Likewise, the decision to ship India-made phones to its other markets will come at the expense of downsizing the companies’ production from Chinese plants. Xiaomi, Oppo, and Vivo are all major Chinese smartphone OEMs with a dominant market presence in India and across the globe.
Intriguingly, it is the first time the companies have agreed to share the volume shipment of their products in India. It also points to their shift in strategy. Previously, the companies declined to export their production to other regions despite the Indian government’s insistence.
But Xiaomi, Oppo, and Vivo are not the only brands to do it. Samsung and Apple also export some of their devices which are manufactured in India. The US phone maker Apple has recently started iPhone 14 production in India while also already manufacturing other series too.
There are reports that the Chinese smartphone giants could export their products to markets in the Middle East, Latin America, and some parts of Europe. Neighboring countries such as Pakistan are also likely to be the market on their list.
Why have Xiaomi, Oppo, and Vivo decided to export their phones made in India to other markets?
There are many reasons Chinese smartphone companies adhered to the Indian government’s request to export their production elsewhere. The country has discouraged investments from China following the Covid-19 pandemic and amidst political skirmishes. Chinese brands have repeatedly found it difficult to smoothly operate their businesses in India.
In addition to this, the Indian government’s production-linked incentive (PLI) schemes could have also played part in their eye-catching ascent. The schemes bring companies benefits for manufacturing products locally. Indian media also reported increased pressure on the manufacturers from the government to export their products.
Reportedly, local firms such as Optiemus Infracom and Dixon are said to be in dialogue with the phone makers to discuss agreements for exporting production.
Complying with the Indian government could also play in the company’s favor at the moment after recent incidents. Chinese companies have felt growing scrutiny in India in recent times. No doubt, they would want to sustain and maintain their business in a large Indian market.