In A First, Xiaomi To Export Made-In-India Phones To West Asia, In Talks With Dixon For Local Mobile Manufacturing

Chinese smartphone manufacturer Xiaomi is making efforts to export "made in India" phones to West Asian countries for the first time by the end of the third quarter of this year, Business Standard reported.

The third-largest smartphone brand in India in terms of shipment volumes, after Samsung and Vivo, is in discussions with contract manufacturer Dixon Technology and other firms to locally produce its phones.

Xiaomi aims to double the usage of Indian components in its handsets (excluding semiconductors) to 70 per cent within the next two years. Currently, Taiwanese firm Foxconn and Chinese companies DBG and BYD assemble Xiaomi phones in India.

The Ministry of Electronics and Information Technology (MeitY) has urged Chinese mobile companies to export their products from India and partner with eligible domestic electronics manufacturing service (EMS) companies under the production-linked incentive (PLI) scheme to develop a local supply chain.

During May, Xiaomi entered into a contract with Optiemus Electronics, a contract manufacturer based in Noida, to produce their Bluetooth neckband earphones.

Xiaomi is also revamping its marketing strategy in India by reducing the number of handset models and focusing on phones priced between Rs 10,000 and Rs 15,000. The company plans to increase its offline sales presence from the current 50 per cent to 60 per cent.

The company needs an overhaul because its market would dip by approximately 9 percent this year to 136 million handsets. Its share could be 17-18 per cent from 20-22 per cent last year.

Xiaomi has discussed with the government about its plan to export mobile phones to the UAE. This would start with entry-level and mid-range phones, before extending to other nations. The company sells its phones in more than 100 countries, and West Asia is a key market for the Chinese company.