Xiaomi further localizes India supply chain via BYD, DBG partnerships
China’s Xiaomi had dominated the Indian smartphone market for three consecutive years until recently losing the top spot to Samsung. It has played by the Indian government’s book to support domestic manufacturing, making smartphones in India rather than shipping them from its home country of China. Now it’s further ramping up production in India by adding two new supply chain partners, BYD and DBG, the company said in an announcement on Thursday.
The move came at a time when the Indian government is applying more pressure on Chinese tech companies. Along with TikTok, dozens of other popular Chinese apps were banned in India last June over “national security” concerns.
So far the hardware companies have remained largely unaffected, but worsening India-China relations won’t likely bode well for Chinese companies wooing Indian consumers. Xiaomi and its Chinese competitors Vivo, Oppo and Oppo-affiliated Realme together commanded as much as 64% of the Indian market in the third quarter of 2020.
This is probably the time for Chinese firms to demonstrate to the Indian government how they could make contributions instead of being a threat. Under the new production partnerships, Xiaomi will be able to significantly ratchet up its output in India, the company said.
The tie-up with BYD and DBG also reflects a growing trend of Chinese manufacturers setting up overseas plants to cope with growing labor costs back home and increasingly hostile trade policies against China. BYD is China’s largest electric carmaker with a long history of making electronics parts, while DBG has been a major supplier to Chinese telecom firms including Huawei. DBG has set up a production plant in Haryana and has increased Xiaomi’s local production by about 20%. BYD’s facility in Tamil Nadu is scheduled to begin operation by H1 this year.
Prior to its deals with BYD and DBG, Xiaomi was already making 99% of its smartphones in India through Apple’s long-time contract manufacturers, the Taiwanese giant Foxconn and California-based Flex.
Xiaomi also stressed that it sources locally, buying mother-boards, batteries, chargers and other components from domestic suppliers like Sunny India and NVT, which together account for over 75% of the value of its smartphones.
Separately, Xiaomi’s India business has onboarded a new partner, Ohio-based Radiant Technology, to make its smart TVs, which have been a bestseller in India. Local electronics company Dixon currently makes its smart TVs.
Xiaomi’s localization effort has led to a 60,000-strong team in India, six years after it first landed in the country, including staff in production, sales, and logistics. The company prides itself on boosting local employment. As Manu Kumar Jain, managing director for Xiaomi India, pointed out in toay’s announcement, the company added 10,000 employees in India last year. “When organizations were downsizing their workforce, we were focused on putting together the building blocks for our growth in the India market – our employees.”
Source: https://techcrunch.com/2021/02/25/xiaomi-india-localization/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).