Now, Lenovo Too Is Planning To Manufacture Smartphones In India!
It seems like every popular smartphone brand wants to cement its foothold in the Indian market by offering devices at more and more affordable prices. And for that to happen they not only have to reduce their costs by various measures (like online only sales), but also have to start manufacturing their gadgets within the country itself. This will help them save up on a lot of taxes like customs and import taxes. And, with Government giving them further push with Make in India initiative, every brand now plans to open a manufacturing unit here in India!
Lenovo has been a popular laptop and computer vendor in India since many years. But when it bought Motorola from Google in 2014, it showed the world how interested it is in its smartphone business.
Lenovo smartphones are currently very popular among the value-for-money category as the company is laser focused on launching affordable 4G phones under Rs. 10,000.
“We believe that 4G/LTE will be the dominant technology in the years to come,“ said Director of Marketing at Lenovo India, Bhaskar Choudhuri.
Lenovo already has a manufacturing unit in Puducherry, but the company is now planning to open a phone manufacturing unit in the country.
We are exploring the opportunity of setting up a manufacturing unit in the country,” he added. He also mentioned that this has particularly come about because of the Government’s ‘Make in India’ initiative.
He said that the smartphone penetration in the country is currently only at 30%, which shows that there is enough headroom for growth. He also mentioned that the company would also expand its retail presence in the country by opening more Lenovo exclusive stores.
Others Brands Are Also Making A Beeline
Lenovo is not the only company which is planning to set up its own manufacturing hubs in the country. Many other electronics manufacturing companies are now eyeing India as a great place to setup their plants for cost reduction and other factors.
The Korean smartphone giant- LG plans to setup its own plant in India and is ready to invest Rs. 1,000 crores in the R&D projects in the country, but will do so only when it achieves 10% market share in India.
Microsoft and Motorola are also planning to jump into the ‘Make In India’ bandwagon and setup their own manufacturing units in India.
Taiwan-based world’s leading contract manufacturing company Foxconn is also planning to set up its iPhone and Xiaomi manufacturing plants in India. As we had earlier reported, Foxconn might setup its iPhone assembly line somewhere in Maharashtra. As per the recent reports, Foxconn is also planning to setup a plant for manufacturing Xiaomi phones at Sri City in Andhra Pradesh.
Company insiders have told us that Gionee is the next in line to announce its ‘Make In India’ plans.
The Govt. of India’s ‘Make In India’ initiative seems to be bearing fruits as more and more companies are coming ahead with plans to setup their own manufacturing/assembly plants in India. This will not only generate employment opportunities for millions of Indians but will also offer cheaper gadgets to the Indian consumers. Good days are not that far!