According to a report by market research firm Counterpoint Research, shipments of smartphones made in India exceeded 48 million units in the first quarter of this year.
The report states that shipments of devices manufactured in the country rose 7 percent year-on-year (YOY) in the quarter, while manufacturing of Feature phones were down 41 percent year over year.
According to the report, the growth of phones manufactured in India is due to the increasing demand for smartphones in the country, as well as an increase in exports. In 2021 Indian manufacturers shipped over 190 million units and this year they are likely to comfortably surpass that number.
“In the smartphone segment, third-party electronic manufacturing services (EMS) companies captured a 42 percent share of local manufacturing and saw 4 percent year-on-year growth in shipments,” the report reads.
Of all the EMS providers in the country, the Indian arm of Taiwanese manufacturer Foxconn, Bharat FIH, led the way in the first quarter of 2022. Domestic company Dixon Technologies followed Bharat FIH in the smartphone manufacturing segment, although Lava made most of the feature phones, and had a 21 percent market share.
Looking at brands, China’s Oppo shipped the most Indian-made smartphones in the quarter, followed by Samsung. The two smartphone manufacturers had a market share of 22 and 21 percent, respectively, of the total number of Made-in-India smartphones shipped.
The mobile phone industry in India has been given a boost in the last two years after the Indian government introduced a Production Linked Incentive (PLI) scheme for manufacturers. As part of this, the government is giving manufacturing companies a 4-6 percent cash incentive for additional sales of Indian-made goods in the 2019-20 base year.
While the program launched in 2020, most PLI applicants did not meet the goals the following year widespread bottlenecks in the supply chain, pandemic lockdowns and other restrictions. The government, in turn, opted to extend the program’s duration to 2025-26, as opposed to the earlier end date of 2024-25.
“Looking forward, we believe India’s mobile phone manufacturing will grow 4 percent yoy in 2022,” Counterpoint said in its report. According to industry estimates, India currently has the capacity to produce between 300 and 350 million mobile phones each year, including both smartphones and feature phones.
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