(Updated Most Recently: August 9, 2022)
The government is probably going to forbid Chinese smartphone manufacturers from selling products for less than Rs. 12,000 after implementing the PLI plan for mobile phones. The action is anticipated to benefit Indian smartphone producers like Micromax, Lava, and others.
Notably, Chinese smartphones dominate the Indian cellphone market, particularly in the sub-Rs. 15,000 price range. However, Samsung has also been able to gain some market share in the nation for smartphones.
The government intends to support Indian handset manufacturers, according to a Bloomberg article; nevertheless, this action is expected to have an impact on sales for top Chinese smartphone manufacturers including Xiaomi, Realme, Oppo, Vivo, Infinix, Tecno, itel, Poco, and Infinix.
Indian Market Sales of Chinese Smartphones: Details
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For the uninitiated, the highest-selling smartphone segment is that priced under Rs. 12,000, which, according to a Counterpoint report, accounts for nearly 80% of the precise sales of these businesses.
If India enacts a ban on China-made mobile phones selling for less than $150, we estimate that shipments of Xiaomi smartphones might drop by 11–14 percent annually, or 20–25 million devices, with sales falling by 4-5 percent. With 66 percent of its devices costing less than $150, it represents 25% of the segment in India, the largest international market for Xiaomi, according to experts from IDC, who were cited by Bloomberg.
Firstpost stated that a Chinese smartphone manufacturer is already preparing to raise the price of the products because of rising input expenses.
It is significant to note that all Chinese brands are receiving investment from the Indian government. Vivo, Oppo, Xiaomi, Huawei, and other Chinese smartphone manufacturers have recently been accused of tax evasion. More than 200 Chinese applications were prohibited by the government in 2020.
The Ministry of Corporate Affairs has filed more than 700 charges against all businesses with ties to China, according to The Print. This demonstrates unequivocally that Chinese corporations are closely watched.
