China’s leading smartphone brands—Oppo, OnePlus, Vivo, and others—are making a major push towards local sourcing of components in India. This move comes as part of India’s Production-Linked Incentive (PLI) scheme and increased government pressure to boost domestic manufacturing.
With India emerging as a key battleground for the global smartphone industry, the shift to local components could reshape the market. Will it lead to cheaper smartphones, stronger supply chains, and less dependency on China? Let’s explore.
Why Are Chinese Smartphone Brands Moving Towards Local Sourcing?
Several factors are driving Chinese smartphone manufacturers to shift from importing parts from China to sourcing them locally in India:
📉 Government Restrictions & Import Taxes
- The Indian government has been tightening rules on Chinese companies amid geopolitical tensions.
- High import duties on smartphone components make local production more cost-effective.
🏭 PLI Scheme & “Make in India” Push
- The Production-Linked Incentive (PLI) scheme encourages companies to increase local manufacturing in exchange for tax benefits.
- The government wants India to become a global smartphone manufacturing hub, competing with China and Vietnam.
🔄 Supply Chain Diversification
- Global chip shortages and supply chain disruptions during the pandemic highlighted the need for more localized supply chains.
- Depending solely on China for key smartphone components is risky in today’s uncertain geopolitical climate.
What Components Will Be Sourced Locally?
Chinese brands like Oppo, OnePlus, and Vivo are looking to source or manufacture key components in India, including:
✔️ Batteries
✔️ Displays and touch panels
✔️ Printed Circuit Boards (PCBs)
✔️ Camera modules
✔️ Chips and semiconductors (with investment in local chip fabrication plants)
While some components are still imported, the push for Indian suppliers is growing rapidly.
Impact on the Indian Smartphone Industry
📉 Lower Prices for Indian Consumers?
- Locally sourced components mean lower production costs, which could result in cheaper smartphones.
- Brands like Realme, Xiaomi, and OnePlus might cut prices to compete in the price-sensitive Indian market.
👷 More Jobs & Economic Growth
- Increased local production will generate thousands of jobs in the electronics manufacturing sector.
- India could export locally made components, reducing its dependence on Chinese imports.
⚖️ Challenges: Quality & Scalability
- Indian component manufacturing is still developing, so quality control could be a concern.
- Scaling up production to meet demand will take time and heavy investments.
What’s Next?
Chinese smartphone brands will likely:
✔️ Set up more local partnerships with Indian suppliers.
✔️ Invest in Indian R&D and manufacturing plants.
✔️ Increase local hiring to support manufacturing and quality control.
The shift towards local components could be a game-changer for India’s electronics industry, strengthening its position as a global tech hub
Final Thoughts
“Several large Indian companies are foraying into components which will aid the localisation process,” said Tarun Pathak, research director at market tracker Counterpoint.Additionally, this move could strengthen India’s position in the global supply chain, attracting foreign investments from component manufacturers and semiconductor firms looking to set up production units in the country. With Apple and Samsung already expanding their local manufacturing footprint, competition in the Indian market is set to intensify, pushing brands to innovate faster and offer better value to consumers. If India successfully scales its electronics ecosystem, it could reduce reliance on China and emerge as a key global exporter of smartphone components, further boosting the country’s economy. 🚀
The “Make in India” movement is transforming the smartphone industry, and Chinese brands are adapting fast. If successful, this shift could lead to cheaper, locally made smartphones, more jobs, and a stronger Indian electronics sector.
Are you excited about locally made smartphones? Let us know in the comments! 📱🔥
Read More: Meta Rolls Out AI Assistant Across Europe: Everything You Need to Know
FAQs
Will this move make smartphones cheaper in India?
Yes, if production costs go down due to local sourcing, brands may reduce smartphone prices to stay competitive
Which smartphone brands are focusing on local manufacturing?
Oppo, OnePlus, Vivo, Xiaomi, and Realme are increasing local component sourcing to comply with Indian government policies.
