Cheap Chinese phones soon no longer ‘live’ in India?

India may soon restrict Chinese mobile giants from selling low-cost products in the local market.

The move is aimed at supporting and protecting India’s domestic manufacturers, while placing more regulatory pressure on Chinese rivals such as Xiaomi, OPPO and Vivo.

Although it has not been officially announced, sources say that low-cost phones under 12,000 rupees ($150) like the Transsion and Realme brands will be removed from this billion-people market.

Chinese low-cost phone brands are dominating the Indian market. (Photo: AFP)

Currently, manufacturers from China are dominating the market share of Micromax, Lava or Karbonn, Indian phone companies that once dominated the segment but in recent years have lost the market to low-cost brands of China. neighboring country.

Authorities are also investigating allegations of tax evasion with OPPO, Vivo and Xiaomi, claiming that these brands do not pay full import tax on parts and components used to manufacture phones sold in the Indian market. Degree.

The protectionist move will further complicate the bilateral relationship between the two neighboring countries. China-India trade is on track to surpass $100 billion for the second year in a row. In the first six months of the year alone, the two sides’ trade increased by $67.1 billion.

Ajay Sharma, a smartphone veteran, said the government’s move to support Indian smartphone brands is faltering.

“If it happens, it will be a huge blow to brands like Transsion, Realme and Xiaomi, which are heavily dependent on the Indian market for growth.”

Ajay said smartphones under $150 accounted for 33% of total sales in the local market in the second quarter of this year, of which Chinese companies accounted for 80% of the market share.

Maximize Market Research, a market analysis firm, said that the total Indian smartphone market is estimated to reach 173 million units in 2020, a compound annual growth rate of 14% during 2021-2027, equivalent to corresponding to an increase of 432.89 million units/year.

Meanwhile, global industry analysis firm Counterpoint estimates the Indian smartphone market revenue to surpass $38 billion in 2021 while recording a 27% year-on-year growth.

Vinh Ngo (According to AsiaTimes)


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