Chinese smartphone manufacturer Infinix is contemplating the establishment of local manufacturing units for laptops in India within the next year. The brand, which entered the Indian laptop market in 2021, currently commands a 7-8% market share on Flipkart but relies on imports for its laptop offerings. The move aims to adapt to recent policy changes affecting laptop imports and align with the Indian government’s push for local production.
Anish Kapoor, the CEO of Infinix India, revealed that discussions with original design manufacturers are underway as the company evaluates the feasibility of domestic laptop manufacturing. Kapoor emphasized the challenge lies in creating a robust ecosystem to support local production.
The envisioned timeline for initiating laptop production within India is less than a year, aligning with impending policy adjustments concerning laptop imports set to take effect next year. The government’s recently introduced import management system allows unrestricted import of IT hardware, including laptops, until November 1, 2024. Post this date, import restrictions will gradually come into play, taking into account factors such as local production, export quantities, and the previous year’s import amounts.
The Indian government has granted approval to 110 applications from major hardware players seeking authorization for importing laptops and other IT hardware products. Notably, the government opted for an ‘import management system’ instead of the initially proposed licensing regime for IT hardware products.
This system, effective from November 1, streamlines inbound shipments through authorization, specifying quantity and value, offering a one-year grace period for companies to establish local manufacturing capacities.
Infinix’s decision aligns with the industry trend, as overseas brands like HP and Dell are also enhancing their manufacturing capabilities or partnering with electronics manufacturing service providers for local production.
Despite India’s consistent reliance on foreign imports for computers and laptops, the government’s Production-Linked Incentive (PLI) scheme for IT hardware products, spanning six years, could incentivize companies like Infinix to invest in local production. The PLI scheme aims to attract investments, generate employment, and foster incremental production worth INR 3.35 trillion.
In Q3 2023, Infinix, part of the Transsion Group, reported significant growth and secured a position among the top 10 global smartphone brands by shipments. The brand is recognized for innovative technologies, including the Ultra HD (4K/60FPS) front camera, and operates in over 70 global markets.
