Motorola, the smartphone brand owned by China’s Lenovo, aims to double its exports from India starting next year, emphasizing a focus on the North American market. The company, an early beneficiary of the Indian government’s production-linked incentive (PLI) for mobile phone manufacturing, intends to increase shipments to North America, a market primarily served from China.

Prashant Mani, Executive Director, Asia Pacific, Motorola, shared the company’s strategy, stating, “North America is our primary export market from India. Currently, we have been exporting 20-25% of our capacity to North America, and every year, we are seeing step-ups in terms of growth. We are planning to double our exports next year (in 2024).”

Motorola exported over 1 million smartphones from India in 2022, manufactured by local electronics contract manufacturer Dixon Technologies. As of October 2023, the company has already exported 800,000 units. Mani highlighted the company’s objective to achieve faster growth in exports compared to its sales in the Indian market.

The move aligns with the Indian government’s goals of promoting exports and localization within the mobile phone industry. Motorola has reportedly achieved a domestic value addition of 50-60%, excluding semiconductor parts, surpassing competitors like Samsung and Apple in this aspect.

At a time when New Delhi urges Chinese smartphone brands to deepen local manufacturing and increase exports from India, Motorola’s expansion plans coincide with the geopolitical tensions between Washington and Beijing. The company is strategically positioned to leverage the current situation, as India becomes a favorable destination for manufacturing and exports.

Motorola’s strong market share in the US, Brazil, and Japan positions it well for international exports. The company has been successful in its partnership with Dixon, benefiting from the PLI scheme announced in 2020. Dixon, in its recent earnings call, reported increased orders from Motorola, contributing to a significant revenue growth of 77% year-on-year.

The collaboration with Dixon has helped Motorola offset the cost disadvantages associated with relocating production from China to India. Prashant Mani emphasized the importance of localizing more components within India and expressed optimism about achieving this goal within the remaining three years of the PLI scheme.

“The PLI was created to offset the cost disability in manufacturing in India. It did offset to an extent. But without the PLI, we still need to catch up on the cost disabilities, which is why localization will become very important,” said Mani. He emphasized the company’s commitment to expanding local sourcing, including components beyond batteries, to further strengthen its manufacturing ecosystem in India.

Motorola, the smartphone brand owned by China’s Lenovo, aims to double its exports from India starting next year, emphasizing a focus on the North American market. The company, an early beneficiary of the Indian government’s production-linked incentive (PLI) for mobile phone manufacturing, intends to increase shipments to North America, a market primarily served from China.

Prashant Mani, Executive Director, Asia Pacific, Motorola, shared the company’s strategy, stating, “North America is our primary export market from India. Currently, we have been exporting 20-25% of our capacity to North America, and every year, we are seeing step-ups in terms of growth. We are planning to double our exports next year (in 2024).”

Motorola exported over 1 million smartphones from India in 2022, manufactured by local electronics contract manufacturer Dixon Technologies. As of October 2023, the company has already exported 800,000 units. Mani highlighted the company’s objective to achieve faster growth in exports compared to its sales in the Indian market.

The move aligns with the Indian government’s goals of promoting exports and localization within the mobile phone industry. Motorola has reportedly achieved a domestic value addition of 50-60%, excluding semiconductor parts, surpassing competitors like Samsung and Apple in this aspect.

At a time when New Delhi urges Chinese smartphone brands to deepen local manufacturing and increase exports from India, Motorola’s expansion plans coincide with the geopolitical tensions between Washington and Beijing. The company is strategically positioned to leverage the current situation, as India becomes a favorable destination for manufacturing and exports.

Motorola’s strong market share in the US, Brazil, and Japan positions it well for international exports. The company has been successful in its partnership with Dixon, benefiting from the PLI scheme announced in 2020. Dixon, in its recent earnings call, reported increased orders from Motorola, contributing to a significant revenue growth of 77% year-on-year.

The collaboration with Dixon has helped Motorola offset the cost disadvantages associated with relocating production from China to India. Prashant Mani emphasized the importance of localizing more components within India and expressed optimism about achieving this goal within the remaining three years of the PLI scheme.

“The PLI was created to offset the cost disability in manufacturing in India. It did offset to an extent. But without the PLI, we still need to catch up on the cost disabilities, which is why localization will become very important,” said Mani. He emphasized the company’s commitment to expanding local sourcing, including components beyond batteries, to further strengthen its manufacturing ecosystem in India.