In a strategic move, Tata Group is set to construct an expansive iPhone assembly plant in Hosur, Tamil Nadu, aligning with Apple’s broader plan to boost manufacturing in India. Anticipated to house 20 assembly lines, the facility is poised to employ approximately 50,000 workers within the next two years, with operational commencement expected in the next 12–18 months.
Apple’s Localization Drive and Collaborative Initiatives with Tata
The upcoming plant underscores Apple’s commitment to localize its supply chain and strengthen its collaboration with Tata. Currently managing an iPhone manufacturing unit from Wistron Corp. in Karnataka, India, Tata’s involvement reflects Apple’s diversification beyond China. As part of the plan, Apple and its suppliers are gearing up to produce over 50 million iPhones annually in India over the next two to three years, with further expansion in subsequent periods. This initiative dovetails with Tata’s proactive approach to broaden operations, encompassing iPhone enclosure production and the establishment of 100 Apple-dedicated retail outlets.
Government Incentives Propel Growth as Apple and Tata Seek Subsidies
Under Prime Minister Narendra Modi’s production-linked incentives (PLIs), major Apple suppliers such as Foxconn and Pegatron have intensified their presence in India. This surge has resulted in substantial iPhone assembly, surpassing $7 billion in the previous fiscal year and capturing around 7 percent of the global production share. As the new plant takes shape, albeit smaller than Foxconn’s Chinese hubs, both Apple and Tata are poised to seek government subsidies for its establishment and future growth. This strategic move coincides with the expiration of previous incentives, marking a significant milestone in the ongoing strategic partnership between Apple and Tata.
