Vishakhapatnam : Joining Prime Minister Narendra Modi’s Make in India initiative, Xiaomi said it has tied up with Taiwan’s Foxconn to assemble smartphones here as it looks to grab a larger share of the booming Indian market.
The tie-up, which will make India, Xiaomi’s second local manufacturing hub outside China, comes within days of Foxconn announcing USD 5 billion investment for a plant in Maharashtra. The new factory at Sri City in this coastal town in Andhra Pradesh began rolling out Xiaomi’s Redmi2 Prime, priced at Rs 6,999 for a 2GB model. Making phones here will help the Chinese firm cut cost and shorten delivery time as it looks to grab a bigger slice of the world’s third-largest smartphone market.
The world’s fourth-largest phone vendor, which started operations in India last year, also manufactures devices in Brazil. “We are starting small, but our eventual aim is to make most of our devices if not all of our devices that are sold in India, here,” Xiaomi’s India head Manu Jain said.
Andhra Pradesh Chief Minister N Chandrababu Naidu said, “We can become hardware manufacturing hub to not just meet our own demand but of the world. We have a huge potential. We have 10 million tech graduates and entrepreneurs.”
Other global players like HTC, Asus, Motorola and Gionee have also said they are exploring opportunities for manufacturing in India as the government is aggressively pushing the ‘Make in India’ initiative.