Xiaomi, Oppo, Vivo May Move Some Export Production From China To India
Chinese smartphone brands Xiaomi, Oppo and Vivo have agreed to export their Indian-made devices to other markets, a move that could cut a large chunk of production at Chinese factories. Meanwhile, it will give a boost to the Indian government's Make in India program, which has so far attracted the world's leading manufacturers. Also Read – Vivo X90 leaked on BIS certification website; indicating an imminent launch in India
According to The Times of India, this is a major victory for the government's efforts as it would be the first time that Chinese smartphone companies agree to share their global production with India after repeated refusals. This may also lead to a change in the production strategy of the three companies. Also Read - Vivo Y02 Launched in India: Check Price, Specifications, Availability
Xiaomi, Oppo and Vivo have announced plans to start exporting the phones they manufacture in India. The other two major smartphone brands, Samsung and Apple, already export some of their flagship devices from India to other markets. The report said potential overseas markets for India-made Xiaomi, Oppo and Vivo phones would include Africa, the Middle East, Latin America and parts of Europe, as well as countries close to India such as Pakistan. Also Read: Oppo Find N2 foldable phone chipset and display details leaked
It could also be a result of the severe restrictions imposed by the government to discourage Chinese investment in India after the pandemic and the fighting in the Galwan Valley. It has become difficult for smartphone companies to continue investing in India, especially without incentives for the government's efforts to make India a global manufacturing hub.
Moreover, the government's Production Linked Incentive (PLI) schemes could also be the main reason behind the exit of the three companies. These schemes give manufacturers special advantages for local production, which attracts Apple and Samsung. The report, citing multiple sources, claims that Xiaomi, Oppo and Vivo are also facing "increasing pressure" from the government to export their devices. Domestic manufacturing companies such as Optiemus Infracom and Dixon can now discuss "bids and deals" for export manufacturing.
Shifting some export business from China to India may also help brands appease the government after the recent unrest. Xiaomi, Oppo and Vivo, the three brands are under government control of Indian business and related finance.