Xiaomi Goes The ‘Make In India’ Way, To Produce Wireless Audio Products In The Country

Following the footsteps of many other electronics manufacturers, the Indian arm of Chinese smartphone giant Xiaomi now plans to commence the production of wireless audio products in India soon. 

WIthout disclosing the timeline, Xiaomi said it has partnered Optiemus and will manufacture the products at the latter’s factory in Uttar Pradesh.

“Happy to announce our tie-up with Optiemus Electronics Limited…  to manufacture high-quality #audio products locally in Noida. The partnership reinforces our commitment to #MakeinIndia – broadening & deepening supply chain #localisation & supporting domestic champions,” tweeted Xiaomi India President Muralikrishnan B.

As per reports, Xiaomi is eyeing a 50% increase in the production of locally sourced components by 2025.

The original equipment manufacturer (OEM) didn’t divulge any details on the kind of audio products it is looking to make in India but said it is “committed to forging more such collaborations for a wider range of categories, across our product line-up”.

The announcement marks the localisation of production of another one of Xiaomi’s products. Xiaomi reportedly already manufactures most of the smartphones and TVs it sells in the country. 

With this, Xiaomi has joined a growing list of smartphone manufacturers that are making a beeline to start production in India. The recent past has seen giants such as Apple and Samsung set up their manufacturing plants in India, along with their suppliers and vendors. 

This pivot to India is largely the result of state-backed production-linked-incentives (PLIs) available for OEMs looking to set up a base in the country. Apart from the ‘Make in India’ initiative, the geopolitical standoff between Washington and Beijing has also forced many global players to rethink India as the new manufacturing hub in the region, away from China. 

Earlier this month, Apple’s contract manufacturer Foxconn conducted a groundbreaking ceremony for its $500 Mn manufacturing plant in Telangana. Apart from this, Apple is also reportedly mulling plans to manufacture iPhone15 and iPhone15 Plus in India in partnership with Tata Group in India. 

From Salcomp to Jabil, a long list of Apple vendors have also set up shop in India underlined plans to scale up the ecosystem. 

Recently, Minister of State (MoS) for Electronics and Information Technology Rajeev Chandrasekhar also said that Samsung and Apple are looking to shore up their electronics manufacturing in India.

The latest development also comes at a time when Chinese smartphone makers, which once dominated the Indian smartphone market, have been piped by South Korean OEM Samsung. 

As per a report, Samsung accounted for a major chunk of smartphone shipments in the country in the first quarter (Q1) of the financial year 2022-23 (FY23). Samsung shipped 6.2 Mn smartphones, accounting for a 20.1% market share in the quarter, well ahead of Chinese competitors such as Xiaomi, Vivo, Oppo and Realme.