Harvest Chinese -enterprise achievements, support local industries, "Indian mobile phone manufacturing" want to copy China?

[Global Times Reporter Yuan Jirong] As the second largest mobile phone production country in China and the fastest mobile phone market in the world after China, India is attracting more and more international large manufacturers to invest and build capacity. Industry insiders recently broke the news that Apple intends to shorten India's "production time difference" after the iPhone 14 in September. At the same time, India is supporting Apple, Samsung and other brands to introduce production lines with Chinese enterprises, and increase support and inspire local mobile phone manufacturing. It aims to reduce the Chinese brand share in the Indian market and help "manufacture in India" to copy the Chinese mobile phone manufacturing industry in China success. Yang Shucheng, Secretary -General of the China -India Electronics (Mobile) Enterprise Association, told the Global Times reporter that this represents the "Made in China" in the future. Come to develop rapidly, but to copy the glory of the Chinese mobile phone industry, India still has a long way to go.

According to statistics from the Indian mobile phone and electronic associations, the total exports of Indian mobile phones are rising year by year, and it is expected to exceed $ 110 billion in 2025.

China Enterprise Industry Chain supports the Indian mobile phone market

According to industry insiders, Apple intends to start production in India after two months of sale in iPhone 14. Earlier, Apple officially announced that it has begun to produce iPhone13 in India. This is the fourth iPhone assembled and produced in India after the iPhone SE was produced in 2017. Mobile foundry companies and Shuo also plan to start assembling iPhone12 in the factory in India. Although the above models are all produced by the Indian market for the Indian market, the Indian local mobile phone industry chain is also rubbing the palm, trying to seize the low -end market. Driven by the entry of China's mobile phone manufacturing industry, India ’s mobile phone manufacturing industry has achieved a breakthrough from scratch in the past seven or eight years, and has developed into the world’ s second largest mobile phone manufacturing country after China.

According to data released by the Indian Mobile Phone and Electronics Association, the mobile phones made in India in 2021 accounted for 11%of the world's market share. Compared with the 3%share in 2014, it has made great progress. It is expected that this number will continue to rise this year. However, in comparison, India's local mobile phone brand manufacturing has retreated. Yan Xiaoxiao, chairman of the three wealthy projects for mobile phones for mobile phones, told the Global Times reporter that before 2014, Indian local mobile phone brands with large markets basically did not produce mobile phones. And these mobile phones are very cheap, the cheapest sold less than 100 yuan. In 2014, there were four main local mobile phone brands in India, collectively referred to as milk (Milk), Micromax, Intex, LAVA, and Karbonn, which occupied 46% of the Indian market, and the market share of all local mobile phone brands was 54%. At the end of 2017, the Micromax market share has fallen to 6%, and China's smartphone brand accounts for 40%of the Indian market. This data has climbed to 75%in 2021. China accounts for 9 of the top ten smartphone brands. One is Samsung. India's "Raydifer" News Network recently reported that the market share of Indian local mobile phone brands fell from 66%in 2015 to 1%in 2021, and it can basically declare that it was eliminated. Yan Xiaoxiao said that the Indian brand is currently mainly functional.

Therefore, in recent years, India ’s mobile phone manufacturing industry can achieve development, mainly due to the expansion of the production capacity of Chinese enterprises. Yang Shucheng said that more than 15 Chinese mobile phone manufacturers have completed a factory plan in India. Yan Xiaoxiao said that India requires Chinese companies to gradually set up factories in India. At present, China's mobile phone industry chain can produce chargers, data cables, headphones, protective covers, SMT line boards and cameras in India. In 2022, TCL Huaxing Optoelectronics's mobile phone display factory in India invested mass production. At present, only some factories of chips and electronic components have not been printed.

For "harvesting"

Facing the leading position of China's mobile phone manufacturing industry in India, India has begun to implement a series of targeted policies. Actively promote the development of Indian mobile phone manufacturing and local mobile phone manufacturing through the "internal introduction", that is, through tariffs and administrative methods, attract the mobile phone manufacturing industry and support local mobile phone brands in other countries, and reduce the share of China's mobile phone manufacturing industry. It even crowded out the Indian market and "harvested" the fruits of China's mobile phone manufacturing industry to Indian electronics manufacturing.

In mid -December 2017, India announced that import tariffs on electronic and electrical products such as mobile phones, video and photography equipment increased from 10 % to 15 %. In February 2018, India also announced that it plans to increase tariffs on imported mobile phones from 15 % to 20 %. In early 2020, the Indian government once again announced the increase in basic tariffs on smartphone display modules and touch modules.

In addition to improving tariffs, India also introduced encouragement and reward policies. According to the manufacturing incentive plan introduced earlier in 2020, smartphone manufacturers produced in India each year in the number of specific high-end smartphones in India. The higher part will get a subsidy of 4%to 6%in each part. In the mid -2020, the $ 6.6 billion support plan was launched to attract investment in smartphones and electronic equipment companies.

Although India has frequently supported policies in recent years, according to Indian media reports, in view of the high scale and penetration rate of Chinese mobile phone brands in the Indian market, the Indian mobile phone industry chain still mainly serves Chinese enterprises. As a result, the Indian government also began to put pressure in other ways. After raising the basic tariffs on mobile phones and components from 2017-2020, incentive measures such as additional investment and sales rewards for mobile phone manufacturers have been provided for mobile phone manufacturers. The above policies have eliminated Chinese mobile phone manufacturers. Especially in the US $ 6.6 billion support plan launched in 2021, none of the 22 companies registered for participating. Yan Xiaoxiao said that India has the ambition to replace China into a "world factory". As long as foreign factories are in India, the Indian side will slowly change the policy to enhance local brand capabilities. India now exaggerates the political negative information of the two countries, restricts the sales market of Chinese brand phones at low -end prices, and focuses on checking the compliance of Chinese companies, causing negative brand effects. In 2022, most Chinese brand mobile phones have declined, while Samsung sales are increasing. At present, it is reported that the construction of the second phase of the Vivo India's new factory is suspended, indicating that it is also waiting for the market.

The overall supply chain and research and development are seriously restricted by overseas

How long can Chinese mobile phone manufacturers persist in India? Industry analysts said that India wants to achieve the goal of "Made in India" in the local market to replace "Made in China", at least to create a considerable industrial chain, which may take more than ten or even 20 years to achieve it. "Compared with the development of China's smartphone development, it took more than ten years from the monopoly market by the international brand to the realization of the domestic 'counterattack'. The current Indian smart phone is also experiencing the second consumption era of 'from more to many', It means that India will still be the core competition for the global smartphone brand in the next 10 years. "Yan Xiaoxiao said.

At the same time, some people participating in the Indian mobile phone industry chain analyzed the Global Times reporter that the cost advantage that the "manufacturing of India" has been repeatedly emphasized now has gradually no longer. India's manufacturing costs are no longer an absolute advantage compared to China. At the same time, if India wants to compete with China's industrial chain to compete for the global mobile phone manufacturing market, it is also necessary to consider the complete supply chain and R & D strength. These two points of the Indian industry chain are currently severely restricted by overseas. In the short term, the Indian mobile phone industry has obtained the Chinese brand market, and it is not realistic to copy the glory of the Chinese mobile phone industry.

"India is still unable to leave the Chinese mobile phone industry for the time being." Yang Shucheng said that although India has issued various policies to restrict Chinese brands in India, if many Chinese brands are really forced to leave, component manufacturers on the industrial chain may not support the remaining leftover to support the remaining remaining remaining A few brands come to India to invest in India. "Without a smartphone company, there is no local component manufacturer." Stegen, a senior research analyst at the analyst of the analysis agency, said that if Chinese smart machine manufacturers are forced to leave, no Indian or foreign brands can quickly fill the demand.

A person familiar with the matter told the Indian media that the Indian government continued to demand the construction of a local supply chain and distribution network from India, and exported from India, indicating that the Indian government still hopes to get their investment. The US "National Interest" article said that India cannot replace China as a world manufacturing power, and the location of China's manufacturing industry in the global supply chain is irreplaceable.

India Mint News said that India's mobile phone manufacturing industry is also facing competition in other countries. Counterpoint statistics, among the global smartphone output in 2021, China ranks first with a share of 67.4%, India ranks second with a share of 15.5%, and Vietnam ranks third with 11%.

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