BUSINESS

After India’s Crackdowns, Chinese Phone Brands Outsource More Manufacturing to Locals

Published: Jun. 18, 2025 6:51 p.m. GMT+8

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Chinese smartphone-makers are increasingly outsourcing production to Indian contract manufacturers to avoid running afoul of regulators in the South Asian country as it aims to become a global manufacturing hub, an industry analyst said.

As of the first quarter of this year, Chinese smartphone-makers had handed over about 66% of assembly work to manufacturing partners that are involved in New Delhi’s Production-Linked Incentive (PLI) scheme, said Prachir Singh, a senior analyst at Counterpoint Research.

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By Q1 2025, Chinese smartphone-makers outsourced about 66% of assembly to Indian PLI-linked manufacturers to mitigate regulatory risks.
Despite more local assembly, most key components still come from Chinese suppliers, limiting value addition in India.
Chinese brands Vivo, Oppo, Xiaomi, and Realme together held 61% of India's smartphone market in Q1 2025.

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Who’s Who

Xiaomi Corp.: Xiaomi Corp., a Chinese tech firm, has faced a tough regulatory environment in India since 2020. Its years-long dominance in the Indian smartphone market weakened, with shipments declining over 20% in 2022 partly due to money laundering allegations. Despite this, Xiaomi was among the top five smartphone sellers in India in Q1 2025, contributing to Chinese brands' 61% market share. Chinese makers are increasingly outsourcing production to Indian contract manufacturers to mitigate compliance risks.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is a Chinese tech firm. Since 2020, following border skirmishes, New Delhi has adopted a tough stance on the company, alongside other Chinese tech firms like Xiaomi and Oppo.

Oppo Co. Ltd.: Oppo Co. Ltd. is a Chinese smartphone maker that has faced a tough regulatory stance from New Delhi since 2020. Despite this, Oppo ranked among the top five smartphone sellers in India in Q1 2025, contributing to Chinese brands' 61% market share. To navigate challenges and compliance risks, Oppo—like other Chinese firms—is increasingly outsourcing assembly work to Indian contract manufacturers.

Apple Inc.: Apple Inc. is expanding iPhone production in India, making "significant strides" there. However, the company still relies on Chinese suppliers for many high-end components, including semiconductors, display panels, and camera modules, despite the push for domestic manufacturing in India.

Vivo: Vivo is a Chinese smartphone brand that continues to be a dominant player in the Indian market. As of the first quarter of 2025, Vivo ranked among the top five smartphone sellers in India. Together with Oppo, Xiaomi, and Realme, Chinese brands collectively controlled 61% of the Indian smartphone market, despite regulatory challenges.

Realme: Realme (真我) is a Chinese smartphone brand. In the first quarter of 2025, Realme maintained its position among the top five smartphone sellers in the Indian market. Along with Vivo, Oppo, and Xiaomi, these Chinese brands collectively held a 61% market share in India during that period, demonstrating their continued dominance.

AI generated, for reference only