Big win! China companies now exporting ‘Made in India' smartphones & electronics to US, West Asia; notable shift for Chinese brands
Industry officials indicate that Chinese firms are considering exporting phones and electronic devices to the US from India. (AI image)
Big win for '
Make in India
'! Chinese smartphone and electronics manufacturers have begun exporting products from India to West Asia, Africa and the United States—regions traditionally supplied by China and Vietnam—following consistent government encouragement and growth in local production capabilities.
This represents a significant strategic shift for Chinese brands in India, which previously concentrated primarily on domestic sales. This transition follows heightened government oversight of Chinese enterprises following the 2020 border disputes and continuous governmental encouragement.
Through informal channels, Chinese organisations have received guidance to establish local manufacturing through Indian partnerships, develop locally-owned distribution networks, pursue exports, and appoint Indian nationals to senior positions and boards, informed sources told ET.
Oppo Mobiles
India achieved its first foreign exchange earnings of ₹272 crore in FY24 through exports, whilst Realme Mobile Telecommunications (India) generated ₹114 crore, as per their RoC regulatory submissions on May 12.
The organisations have not yet submitted their FY25 financial statements.
Notable shift for Chinese companies
Hisense Group, a prominent Chinese television and home appliances brand, intends to commence exports of locally manufactured products to West Asia and Africa in early 2024.
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Ajay Singhania, managing director of Hisense's local manufacturing associate Epack Durable, informed analysts earlier this month about establishing a ₹100-crore facility in Sri City for Hisense, which will include export operations. He indicated that the facility will duplicate the "designs and everything done" at Hisense's China establishment.
Lenovo Group has planned exports of servers and laptops from India, whilst its subsidiary Motorola currently exports devices to the US.
Dixon Technologies, which manufactures Motorola phones, is increasing its production capacity by 50% to address rising export demands, as disclosed to analysts in the previous month.
Dixon Technologies also produces smartphones for Transsion Holdings, a Chinese company that owns Itel, Tecno and Infinix brands, which has initiated exports to African markets.
According to industry sources, Haier, a prominent consumer electronics and appliances manufacturer, is investigating export possibilities.
Various smartphone manufacturers including Oppo, Vivo, Realme, OnePlus and Xiaomi are collaborating with Indian enterprises and have begun exports. However, RoC filings for Xiaomi, Midea and OnePlus in FY24 did not indicate any foreign exchange earnings from exports.
It is notable that Chinese companies operating in India have not yet selected Indian nationals for positions of managing directors or chief executives.
PLI impact
India's export initiatives receive support through the production-linked incentive (PLI) scheme. Whilst Chinese brands generally remain outside PLI, their manufacturing partners such as Dixon participate in the scheme.
A senior executive from a prominent third-party manufacturing firm, speaking anonymously, indicated that the government has consistently urged Chinese companies to export from India.
He suggested that remaining Chinese brands would soon commence exports.
Supply chain diversification has become crucial due to escalating geopolitical tensions and potential US tariff implications.
Industry officials indicate that Chinese firms are considering exporting phones and electronic devices to the US from India, contingent upon the outcomes of US trade discussions with both India and China.
Currently, Dixon facilities manufacture Motorola smartphones for Lenovo's US exports.
In FY25, smartphones became India's primary export commodity, with overseas shipments increasing by 55% year-on-year to $24.14 billion. Apple dominated with iPhone exports exceeding $17.4 billion, whilst Samsung contributed the remaining portion.
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