Gionee Confirms Their Make In India Commitment; Partners With Foxconn and Dixon To Kickstart Local Production


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Gionee has officially announced their foray into the red hot ‘Make in India’ vision. Gionee now joins other Chinese phone makers : Lenovo, Oppo, Xiaomi, Phicomm and Huawei to kickstart domestic manufacturing of their handsets.

As per reports coming in, Gionee has teamed up with Foxconn to manufacture smartphones from their Sri City plant located at the border of TN and AP. It is the same location where Foxconn is manufacturing Xiaomi and Lenovo’s products as well; and these three Chinese firms are cut throat competitors!

Besides Foxconn, Gionee has also partnered with Dixon to assemble smartphones and feature phones.

Dixon is Noida based Electronics Manufacturing Services firm and the operations will start from October this year. Dixon can produce 7 lakh devices every month, while Foxconn can deliver 5 lakh monthly devices. Gionee will also hire 15-20 engineers per assembly line in these two locations.

As per initial reports, Gionee will start local manufacturing with their “P” and “M” models, which are their entry to mid-range series of smartphones along with feature phones.

As per Aravind Vohra, country CEO and managing director of Gionee India, local manufacturing will help them to introduce their new models faster, and to bring down the cost as well. Gionee will assemble the semi-knocked down units, which will save them higher import duties which would be effective from 2016.

In April this year, we had reported that Gionee will start local manufacturing, but no concrete dates were mentioned. This fiscal year (2014-15), Gionee has grown 450% in terms of revenues. IN 2013-14, they had revenues of Rs 500 crore, which has increased to Rs 2750 crore in 2014-15 fiscal year.

For 2015-16, they are targeting revenues of Rs 6000 crore and total sales of 6 million devices. Rs 225 crore has been allocated for marketing.

Besides initiating domestic production, Gionee will also actively start pushing for online sales in India and globally. Till now, Gionee had avoided the ecommerce route, as they firmly believed in the traditional, brick-and-mortar model for selling their products. Talks are on with Flipkart, Amazon and Snapdeal to launch exclusive models, and the official announcement will be made in October.

Gionee’s president William Lu has also said that this manufacturing and assembling their phones in India will make it easy for them to expand in other SAARC countries: Pakistan, Bangladesh, Nepal & Sri Lanka; as India will act as their hub outside China.

All major Make in India investments Announcements till date:

  1. Samsung to invest upto $1 billion in Uttar Pradesh; Sony will start manufacturing as well
  2. Ford will open Rs 6000 crore factory in India
  3. Foxconn, SoftBank and Bharti to invest $20 billion in Solar Energy
  4. Foxconn will create 10 lakh jobs in India and manufacture iPhone
  5. Huawei gets permission to start manufacturing
  6. LG announced Rs 1000 crore investment for domestic manufacturing
  7. Hero Group to manufacture electronics products in India
  8. Microsoft and Motorola will start local manufacturing
  9. Gionee will kickstart local manufacturing of their phones
  10. Lenovo will manufacture smartphones in India
  11. Airtel will make Make in India set-top boxes
  12. Japan to establish 11 industrial townships & double their investment
  13. Rs 4.5 Lakh Crore investments pledged during Digital India week
  14. Lava to invest Rs 2615 crore in India
  15. Foxconn commits investment of Rs 31000 crore in Maharashtra
  16. Xiaomi to start manufacturing at Sri City
  17. Phicomm to invest Rs 6300 crore in India
  18. ICICI Bank launches robotic locker made under Make in India
  19. Toyota to invest Rs 1000 crore
  20. Ericsson to start their 2nd unit
  21. Oppo will start manufacturing in India
  22. Sony Will Manufacture Xperia Phones in India
  23. Aricent Will Invest $500 Million
  24. Dell May Invest in Smart Cities
  25. Siemens will invest €1 billion and create 4000 jobs
  26. Gionee Partners With Foxconn and Dixon for local manufacturing

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