Chinese Companies Can Be Asked To Stop Selling Sub-Rs 12,000 Smartphones In India: Find Out Why?

Reportedly, center is now planning to put curbs on China-based smartphone players from selling low-end smartphones (less that Rs 12,000)  in order to give a much-needed boost to homegrown brands such as Micromax, Lava, Karbonn and others.

Restriction On Chinese Smartphone Manufacturers

Sources said on Monday that the country “seeks to restrict Chinese smartphone makers from selling devices cheaper than Rs 12,000 ($150) to kick-start its faltering domestic industry”.

Further adding that this move may push Chinese smartphone makers “out of the lower segment of the world’s second-biggest mobile market”.

After implementation, Indian Governments this move will give a body blow to the smartphone brands like Xiaomi and Realme.

Big Chunk Of Smartphone Market Occupied By Chinese Brands

These brands have already captured around 50 percent of the market share in India in the sub-$150 (Rs 12,000 and below) segment, as per the Counterpoint Research.

The Research Director Tarun Pathak said, “Overall, sub-$150 smartphones contributed to 31 per cent of the total smartphone volumes in India in the June quarter this year, compared to 49 per cent in the same quarter in 2018,”.

Further adding, “Chinese brands dominate 75-80 percent of these volumes as Jio PhoneNext has ramped up in the last few quarters. This segment is currently dominated by realme and Xiaomi with 50 percent share,”.

Other brands like Tecno, Infinix and Itel, which comes under Shenzhen-based Transsion Holdings, is also a formidable player in the low-end and affordable segment in the country.

Transsion Group brands has captured a 12 percent share in India’s smartphone market in Q2.

Here, itel led the sub-Rs 6,000 smartphone segment with a massive 77 percent share.

At the same time, Tecno captured the second spot in the sub-Rs 8,000 smartphone segment in the country, as per the  Counterpoint Research.

Going Tough On Chinese Manufacturer

We already know that the country has already taken a super tough stand against Chinese manufacturers.

This can also be confirmed by the recent raids on Chinese smartphone companies such as OPPO, Vivo and Xiaomi.

It appears that the center is looking into cases of alleged tax evasion by three Chinese mobile companies including OPPO, Vivo India and Xiaomi.

These Chinese companies were served notices by the Directorate of Revenue Intelligence (DRI) for duty evasion, as informed by the Finance Minister Nirmala Sitharaman in Rajya Sabha last week.