Motorola, a Lenovo-owned company, has announced its plans to significantly increase its manufacturing investments in India. The company aims to double its smartphone exports and enterprise within the nation, signaling a strategic move to expand its presence in the Indian market and beyond.
One of the key elements of Motorola’s strategy is its focus on manufacturing. The company plans to increase its manufacturing capability through its domestic contract manufacturing partner, Dixon Technologies, with a particular emphasis on catering to the US market. Prashant Mani, Motorola’s executive director for the Asia Pacific, highlighted the importance of manufacturing in their overall strategy, emphasizing the ramping up of production for the US and neighboring countries.
In line with its expansion plans, Motorola is targeting a significant increase in smartphone exports from India. With a goal of exporting over one million smartphones by 2023, the company aims to achieve substantial growth in exports annually. The focus will be on the mid-premium and premium segments, with flagship devices like the Edge and Razr series playing a crucial role in achieving the target. T M Narasimhan, Managing Director for Motorola’s Cellular Business Group in India, highlighted the strong sales momentum and growth observed in these series, underscoring India’s pivotal role in Motorola’s global strategy.
Beyond smartphones, Motorola is also exploring opportunities in other segments such as smart TVs and tablets. The company aims to boost its presence in these segments within India, indicating a broader strategy to diversify its product offerings. By investing in local tablet manufacturing and increasing component sourcing from India, Motorola aims to deepen its engagement with the Indian market. The company also plans to enhance localization content in smartphones, further strengthening its competitiveness and appeal to Indian consumers.
Motorola’s aggressive investment and expansion strategy in India are poised to have a profound impact on the smartphone market in the country. The company’s focus on innovation, premiumization, and local manufacturing is likely to set new benchmarks and challenge existing market dynamics. As Motorola strives to become one of the top smartphone makers in India, its growth model aligns with India’s broader ambitions in the global electronics manufacturing landscape.
The smartphone industry in India has been experiencing rapid growth in recent years. According to market research firm Counterpoint, India surpassed the United States to become the second-largest smartphone market in the world in 2019. This steady growth is attributed to factors such as increasing disposable income, affordable data plans, and the availability of low-cost smartphones.
Motorola’s decision to ramp up its manufacturing investments in India indicates the company’s recognition of the market’s potential. By doubling its smartphone exports and enterprise within the nation, Motorola aims to establish a stronger foothold in the highly competitive Indian smartphone market and expand its reach in neighboring countries.
India’s smartphone market has been dominated by Chinese brands such as Xiaomi, Vivo, and Oppo, which have gained popularity by offering feature-rich devices at competitive prices. Motorola’s strategy of focusing on manufacturing in India will enable the company to compete more effectively against these established players by reducing costs and delivering products faster to the market.
The company’s partnership with Dixon Technologies, a domestic contract manufacturing partner, is a key aspect of its manufacturing plans. This collaboration will facilitate the production of smartphones tailored for the US market, allowing Motorola to tap into a significant customer base and strengthen its global presence.
In terms of market forecasts, Motorola’s ambition to export over one million smartphones from India by 2023 highlights the company’s confidence in the growth potential of its Indian operations. This target aligns with India’s push to become a major manufacturing hub under the “Make in India” initiative, which aims to attract foreign investment and promote domestic manufacturing capabilities.
Motorola’s expansion plans go beyond smartphones, as the company is exploring opportunities in segments such as smart TVs and tablets. By diversifying its product offerings, Motorola aims to leverage its brand recognition and expertise in the consumer electronics industry to capture a larger share of the Indian market. This move also aligns with the increasing demand for smart home devices and the rising popularity of tablets as productivity tools in India.
However, Motorola faces challenges in the highly competitive Indian market. It will need to continue innovating and offering compelling features at competitive prices to gain market share. Additionally, the company will have to navigate India’s complex regulatory environment and overcome logistical hurdles to ensure a smooth manufacturing and export process.
Overall, Motorola’s increased manufacturing investments and strategic focus on the Indian market demonstrate the company’s commitment to expanding its presence and tapping into the growing opportunities in India’s smartphone industry. The success of Motorola’s endeavors in India will not only contribute to its global growth but also serve as a testament to India’s potential as a major player in the global electronics manufacturing landscape.
Related links:
– Lenovo
– Counterpoint Research
– Make in India Initiative