Top government officials said the Indian government has no plans to ban Chinese companies from the entry-level smartphone market.
“No such proposal is under consideration in the Ministry of Electronics and Information Technology,” a person aware of developments within the government said in response to reports that the government intends to at least ban Chinese players from selling phones. 12,000, which includes entry-level and affordable mobile phone segments in smartphones and feature phones.
According to data from Counterpoint Research, as of the quarter ended June, Chinese companies together with entities such as Xiaomi, Realme, Oppo and Vivo captured 63% of the Indian smartphone market.
Chinese firms account for 75-80% share in the sub $150 segment which contributes 31% to the overall smartphone market. Most Chinese companies manufacture in India, and supply to the market comes largely from local production.
According to industry insiders, the government has been apprised of the declining share of local players such as Lava, Micromax, Karbonn and Intex in the Indian market, with the industry seeking policy measures and support to create ‘Indian Champions’.
However, many of these companies have neither the scale of manufacturing nor the marketing to compete with their Chinese counterparts.
Navkendra Singh, Associate Vice-IDC India, South Asia and President for Device Research at ANZ.
“An outright ban is unlikely, but banning certain players overall on a clause basis could lead to an unstable ecosystem. Subject- Tarun Pathak, director of research at Counterpoint Research, said 12,000 is roughly the $5 billion category and only two or three local players can’t take it overnight. He added that Indian brands need a strong portfolio, a mix of distribution and after sales services. , which was currently missing.
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