Fear of Chinese mobile companies is growing because of rising tensions between India and China. Given this, Chinese smartphone makers are blocking their manufacturing-related investment. In this context, Chinese smartphone makers and industry officials say they have been nervous since India banned 59 Chinese apps. Some companies feel that if this situation worsens, the next phase will fall on them.
Major smartphone investors like Oppo and Vivo haven't yet applied under India's ambitious Production Linked Incentive (PLI) scheme. Earlier these companies were showing interest in this scheme. Foxconn and Wistron, the company that makes phones for Apple, have applied for Sarka's PLI scheme. Apart from these, domestic manufacturers like Dixon, Lava and Carbon have applied B. It is to be known that the Government of India has given time till 31 July to mobile companies to apply under this scheme.
According to the Economic Times news, executives of Chinese smartphone companies said they were currently focused on meeting the demand that had grown after the lockdown. Also, attention was being paid to investment for domestic market and export, which has been stopped now.
Vivo was planning to invest around $1004863500 in India. Oppo was also scheduled to set up an Electronic Manufacturing Cluster (EMC) in Greater Noida along with six other companies. This would have invested $468936300 in the country. Foxconn has also announced high investment in India.
In the case, Tarun Pathak, associate director of mobile research firm Counterpoint Research, said that the market recovery will take time, so investment is currently banned.
According to experts, Chinese companies like Xiaomi, Oppo, Vivo, Redmi and One Plus occupy about 80 percent of the total smartphone market in India. However it may fall due to the current supply and geopolitical crisis.
It will be big loss for China if they cannot invest in India. Very Good informative article.