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Huawei to manufacture 3 million smartphones a year in India

Fri 23 Sep 2016

Technology giant Huawei will begin manufacturing smartphones in Chennai, India beginning next month. The company has contracted Flex to begin production of its Honor line of smartphones and expects to produce three million per year.

The announcement came today at Huawei’s ‘Make in India’ inauguration ceremony in New Delhi. ‘Make in India’ is Prime Minister Narendra Modi’s initiative, launched in 2014, to encourage multinational corporations to manufacture their products in India. Huawei’s plans to manufacture smartphones in India are in support of this initiative.

Huawei intends to increase its service presence with over 200 service centers, 30 of them exclusive Huawei service centers in India. It also plans to partner with 50,000 retail outlets to create a comprehensive, nationwide distribution network for its smartphones.

Huawei India CEO Jay Chen said, “We have been present in India for the last 16 years and as part of our India focus, we have been consistently expanding our footprint in the market. We’ll keep looking for opportunities to increase our presence here.”

As sales of smartphones remain fairly flat worldwide, businesses are increasing their focus on emerging markets in APAC, the Middle East, Eastern Europe and Africa. Of these, India is best positioned for growth. India is the world’s second largest smartphone market with over 230 million users, a number expected to grow to over 700 million by 2020. Increased adoption of smartphones is driven by the Indian government’s Digital India initiative, through which the government plans to provide wi-fi and broadband services to rural areas by December 2018.

Smartphone sales grew by 15% in India in the first half of 2016, compared to 4.3% in the rest of the world.

The Indian Minister for Information and Technology, Shri Ravi Shankar Prasad, said, “I would like to congratulate Huawei on its commitment to pursue the ‘Make in India’ vision.”

“As India is set to become the second largest smartphone market, our government would like to invite even more businesses to come and manufacture in India,” he continued. “The smartphone landscape in India is growing every day and such initiatives by technology leaders will help accelerate the growth of local manufacturing industry in India.”

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