FP staffJun 17, 2022 3:31:37 PM IST
According to a report by market research firm Counterpoint Research, shipments of Indian-made smartphones topped 48 million units in the first quarter of this year.
The report said shipments of domestically manufactured devices increased 7% year-on-year (YOY) in the quarter, while manufacturing of feature phones are down 41% year-on-year.
The report says the growth of Indian-made phones can be attributed to the growing 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 expected to comfortably cross the number.
“In the smartphone segment, third-party electronics manufacturing service (EMS) providers captured 42% of local manufacturing share, recording 4% year-on-year growth in shipments,” the report said.
Of all the country’s EMS vendors, the Indian branch of Taiwanese manufacturers Foxconn, Bharat FIH, led in the first quarter of 2022. Homegrown Dixon Technologies followed Bharat FIH in the smartphone manufacturing segment, although Lava manufactured the most working phones. , and held a market share of 21 percent.
Looking at brands, China’s Oppo shipped the most India-made smartphones during the quarter, followed by Samsung. The two smartphone makers held 22% and 21% market share respectively of the total number of Indian-made smartphones shipped.
The mobile phone manufacturing industry in India has been given a boost over the past couple of years after the Indian government introduced a Production Linked Incentives (PLI) scheme for manufacturers. Under this, the government provides manufacturing companies with cash incentives of 4-6% for additional sales of goods made in India during the reference year 2019-2020.
While the scheme was introduced in 2020, most LIP applicants failed to meet the targets last year, following widespread supply chain shortages, pandemic-related lockdowns and other constraints. The government, in turn, has opted to extend the duration of the scheme to 2025-26, as opposed to the earlier end date of 2024-25.
“Going forward, we expect handset manufacturing in India to grow by 4% year-on-year in 2022,” Counterpoint said in its report. Industry estimates indicate that India currently has the capacity to produce somewhere between 300 and 350 million mobile phones every year, including both smartphones. and feature phones.