Chinese giant Huawei is set to to kick off its manufacturing facilities in India. The company will even start churning out smartphones by the month end. It has already linked arms with contract manufacturer Flexotronics, who will be manufacturing Huawei devices in its Chennai based assembly plant.
In case you are unaware of its origins, Flexotronics is a US based international supply chain solutions company that has been providing OEMs with design, manufacturing, distribution and after market services. The company has a full-fledged plant near Chennai, where it makes devices for brands like Lenovo and Motorola.
As per Economic Times, which cites a person aware of the whole matter,
Huawei may begin with a capacity of 200,000 units a month, but it can scale up rapidly as the plant has enough capacity to take on more orders.
200,000 units is still a huge number and should give Huawei’s presence in the country, a significant boost. It is not the first Chinese manufacturer to come up with this novel idea though. India is one of the largest smartphone markets in the world and more importantly, sales are expected to go up even as other markets reach saturation.
China in particular, has witnessed a huge slowdown in the industry and many of its homegrown smartphone manufacturers are now making a beeline for other destinations — a list, which has India near the top. Considering all these factors, OEMs — particularly Chinese ones — have been working upon ramping their manufacturing capabilities in the country.
India’s importance can also be gauged from the fact that China’s largest telecom gear maker received permission to kick off manufacturing in the country in 2015 and has capitalized upon it within the span of a year. The company already had an India connection. It first came here almost two decades ago when it kicked Research and Development here in 1999.
Huawei may start off with its popular Honor 5C or Huawei P9 devices and gradually start making other variants as well. Meanwhile, there has not been a formal announcement yet, although an official atatement regarding the matter is expected from either Huawei or Flexotronics, is expected by next month.