Xiaomi is increasing its production capacity in India, with the goal of locally producing 99% of its smartphones for the Indian market.
Xiaomi announces new partnerships with Indian companies, DBG and BYD. Its goal is to increase its smartphone manufacturing capabilities in India, in order to consolidate its position as the country's preferred smartphone brand. The two partners, DBG and BYD, each have a smartphone manufacturing plant, in Haryana and Tamil Nadu, respectively.
These new partnerships are expected to increase Xiaomi's manufacturing capacity in India by more than 20%, and support the "Make in India" initiative, Xiaomi says. This initiative was set up by the Indian government in late 2014 to encourage companies to manufacture in India.
Xiaomi specifies that these new partnerships would allow more than 99% of its Indian smartphones to be manufactured locally. The majority of components - including the motherboard, secondary board, camera module, battery, back panel, USB cable, and chargers - must be purchased or manufactured locally.
Until now, the manufacturing of Xiaomi's Indian smartphones has been done entirely through Foxconn and Flex.
“2020 has been an exceptional year; the pandemic has brought about multiple challenges that have disrupted the entire global and Indian supply chain. Despite this, the Mi India team has worked to continue to develop its local supply chain and manufacturing capacity,” said Manu Kumar Jain, Managing Director of Xiaomi India.
Xiaomi has also set up a new manufacturing plant, in partnership with Radiant Technology, specifically dedicated to the manufacture of televisions. With the commissioning of this new factory, all Xiaomi smart TVs destined for India will now be manufactured locally, the company said.
In total, 10,000 people will join Xiaomi, whose Indian workforce will therefore represent 60,000 employees.
“This workforce of 60,000 has been built over the past six years, since its inception in 2014, and includes partners in manufacturing, after-sales service, offline sales, logistics and corporate employees, “explains Xiaomi.
Xiaomi has been the most popular smartphone brand in India since 2019, with over 28% of the Indian market, while Samsung only accounts for around 25%. Of the smartphone market as a whole, more than 66% is owned by Chinese brands.