Xiaomi boosts India phone making capacity by 20%

New Delhi: Chinese electronics giant Xiaomi is expanding its India phone production capacity by 20% and is looking to make gains from the government’s production-linked incentive (PLI) scheme by sourcing devices from local contract manufacturers that may include companies such as Optiemus Infra and Dixon.

Xiaomi India MD Manu Jain said the company remains bullish on growth in India despite tensions between India and China on the border and trade front. “The demand for smartphones and smart TVs is robust and we are expanding in both the categories,” Jain told TOI.

Jain said demand for smartphones has been going strong with adoption of digital products picking up after the Covid lockdown and work, educate and entertain-at-home phenomenon. The company has been a top player in the smartphone business, but has of late been facing stiff competition from Korean player Samsung and fellow Chinese makers like Vivo, Realme, and Oppo.


The Xiaomi MD said two new manufacturing partners for phones — BYD in Tamil Nadu and DBG in Haryana — were being added, beyond the original suppliers Foxconn and Flex. He said nearly 100% of the phones are made in India, and now it is undertaking an exercise to localise components sourcing through manufacturing partners.

On the PLI scheme where none of the Chinese companies were able to make the cut, he said Xiaomi is exploring to get a slice of the benefits through companies that are contract manufacturers and have been awarded the scheme that gives a 4-6% incentive on production value.

“I personally believe that PLI is a great scheme and a great effort by the government to ensure that India emerges as a global manufacturing hub,” Jain said.