Finland-headquartered HMD Global, which makes Nokia mobile phones is reportedly in talks with its Taiwan-based contract manufacturer Foxconn to export handsets from India, as it plans to become the top three smartphone makers in India.
According to HMD’s global vice president and India head Ajey Mehta, the company is exploring options for export of both smartphones and feature phones. HMD wants Foxconn to get component suppliers to India in order to start manufacturing mobile phones. The move is aimed at driving the scale of local production, reduce overhead and costs.
After it restarted operations under HMD Global, Nokia has captured around 8.5-9% share in the feature phone market in the country and around 3-3.5% share in smartphones market.
Citing Mehta, ET reported, “Nokia in the past used to be a major exporter of mobile phones from India. Now that we are once again manufacturing almost all handset models in the country, there is scope once again to export handsets.”
According to Mehta, Nokia currently manufactures PCBs (printed circuit boards) made indigenously through Foxconn, and the company intends to maximise the component manufacturing part over the next two to four years.
India is the second largest mobile phone maker after China, and home to 268 mobile phone assembling units, as per India Cellular and Electronics Association estimates.
Meanwhile, smartphone manufacturers such as Samsung, Xiaomi, Oppo and Vivo have been betting big in India to boost the capacities of their factories. While Samsung has already set up its mobile phone factory in Noida, China’s Vivo is investing INR 4,000 Cr to set up another factory in Uttar Pradesh. China’s Xiaomi has also announced an investment of $2.5 Bn to set up shop in the country.
Counterpoint Research’s data estimates India to have imported $13 Bn worth of mobile components in 2018.
[The development was reported by ET.]