OPPO and Lava lead smartphones and feature phones shipments respectively
In the April-June quarter of 2022, shipments of smartphones manufactured in India witnessed a 16% YoY growth. The latest research on ‘Made in India’ products revealed interesting data points. As the Production Linked Incentive (PLI) Scheme is applicable for this segment, the industry players were incentivised to enhance productivity in order to meet the essential criteria. With this impressive growth, the smartphone shipment stood at 44 million units in this quarter.
It is noteworthy that the local manufacturing push is positively impacting the adjoining sectors like CIoT. In the wearable segment, TWS contributed a big 16% and stood first in domestic manufacturing. Neckbands and smartwatches closely followed with 8.4% and 6.2% contributions respectively.
What The Researchers Say
Saying that the Made in India smartphone shipments grew as compared to last year, Senior Research Analyst Prachir Singh commented: “During the quarter, we witnessed increasing investments in the Indian manufacturing ecosystem with new plants being set up as well as existing ones being expanded. Recently, OPPO announced the Vihaan initiative under which it plans to invest $60 million in the next five years to empower the local supply chain. Samsung also increased its manufacturing with the premium segment smartphones, especially the Galaxy S series. Going forward, the upcoming festive season will further drive the Made in India shipments due to the expected increase in local demand.”
Commenting on the government’s focus, Research Analyst Priya Joseph said, “The government aims to make India an electronics manufacturing hub in the next four to five years. In its vision document released earlier, the government considers consumer electronics segments like smartphones, laptops, tablets, TVs, TWS and electric components as among the most promising for India’s transformation as an electronics hub. To help drive more initiatives under the themes of Make in India and Digital India, the government, in its last budget, pushed the total allocation to $936.2 million. This step not only aims to incentivize India-based manufacturing but also catalyse investments in the sector to support job creation, ease of doing business, import reduction and export promotion.”
The report suggests that the government’s push for a holistic semiconductors ecosystem will lead to a rapidly expanding electronics manufacturing and innovation ecosystem going ahead. It will attract manufacturers and investors while also making India a crucial player in the global value chain.