Huawei phones made in India
Print Edition
CHINESE telecoms giant Huawei Technologies Co has won a key Indian government manufacturing approval, paving the way for it to become the first major Chinese brand to make handsets in one of the world’s biggest markets for mobile phones.
The green light from the Ministry of Home Affairs, confirmed by an official yesterday, comes 19 months after Huawei first applied for a manufacturing license, amid wrangling over national security concerns. It also marks a significant boost for Prime Minister Narendra Modi’s “Make in India” campaign.
India has 975 million mobile phone subscriptions in a fast growing market. Close to 150 million subscribers use mostly imported, Internet-friendly smartphones, a number that’s forecast to grow about 26 percent annually until 2019, according to a recent HSBC report.
“India is an important overseas market for Huawei,” Allen Wang, president of Huawei’s consumer business group in India, said yesterday. “We aim to become a top-three brand in India within three years.”
A spokesman for Huawei in India said separately that the firm had not received official communication from the government, and declined to comment further.
Pending final approval, Huawei would become the first big-name Chinese phone maker to make hardware in India’s growing market to help compensate for slowing growth at home. Xiaomi, China’s leading smartphone maker, earlier this month reported a sequential drop in half-year sales.
Huawei already has research and development operations in India, and manufactures for export in the southern state of Tamil Nadu. Setting up local research and production centers is seen as key to helping Chinese firms offer top-end features at even lower cost to India’s price-sensitive consumers.
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