Following the trend set by various electronics manufacturers, Xiaomi’s Indian division has announced its plans to start producing wireless audio products in India. The Chinese smartphone giant has partnered with Optiemus Electronics Limited and will manufacture the products at their factory in Uttar Pradesh, although no specific timeline has been disclosed.
Xiaomi India President, Muralikrishnan B, expressed his happiness over the partnership, emphasizing the commitment to “Make in India” and the localization of the supply chain. Reports suggest that Xiaomi aims to increase the production of locally sourced components by 50% by 2025. Although the company did not reveal the specific audio products it plans to manufacture in India, it mentioned its dedication to collaborating across various categories in their product lineup.
This move signifies another step towards local production for Xiaomi, as it already manufactures the majority of its smartphones and TVs sold in India. The company now joins the growing list of smartphone manufacturers, including Apple and Samsung, who have established manufacturing plants in India along with their suppliers and vendors.
The push towards India as a manufacturing hub is largely attributed to state-backed production-linked incentives (PLIs) offered to original equipment manufacturers (OEMs). Additionally, the geopolitical tensions between the United States and China have led global players to reconsider India as an alternative manufacturing destination in the region.
Apple’s contract manufacturer, Foxconn, recently conducted a groundbreaking ceremony for its $500 million manufacturing plant in Telangana, with plans to manufacture iPhone models in partnership with the Tata Group in India. Several Apple vendors, such as Salcomp and Jabil, have also established operations in India, indicating a growing ecosystem.
According to Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, both Samsung and Apple are exploring opportunities to strengthen their electronics manufacturing in India. This news comes at a time when Samsung has overtaken Chinese competitors in the Indian smartphone market, accounting for a significant portion of smartphone shipments in the first quarter of the financial year 2022-23.
As Xiaomi ventures into the production of wireless audio products in India, the company aims to capitalize on the benefits of local manufacturing, expand its supply chain, and cater to the increasing demand for audio products in the country.