According to the latest research by Counterpoint, "Made in India" smartphone shipments in the first quarter of 2022 increased by 7% year-on-year to more than 48 million units.
Prachir Singh, Senior Research Analyst, said: "India's smartphone manufacturing industry is growing. In 2021, more than 190 million 'Made in India' smartphones will be shipped. The increase as well as the increase in exports are the main reasons for the continued growth. Various initiatives by the Indian government to increase the local manufacturing industry have provided support for this. However, due to the decline in demand in the past few quarters, the manufacturing volume of feature machines will continue to grow in 2022. It was down 41% year-on-year in the first quarter."
On the manufacturing landscape and strategy, Singh said: "In the smartphone sector, third-party EMS (Electronic Manufacturing Services) providers have a 42% share of the local manufacturing sector with 4% YoY growth in shipments. Bharat FIH is 2022 The largest EMS provider in Q1, followed by Dixon Technologies. However, in-house manufacturing capacity is also growing. This quarter, India's domestic smartphone manufacturing market share exceeded 58%. OPPO leads the "Made in India" smartphone market with a 22% share Shipments, followed by Samsung with 21%. However, in the feature phone segment, the market share of EMS exceeded 68% in the first quarter of 2022. Among the "Made in India" feature phones, Lava led the way with 21%. % market share. Among third-party EMS providers, Flex, Bharat FIH and Dixon Technologies lead the feature phone segment.”
Referring to the Indian government's initiative, research analyst Joseph said: "The government's focus has always been to make India a manufacturing hub. It has made a lot of moves in this direction. It turns out that production-linked incentives for mobile phones ( PLI) program is an accelerator for local manufacturing. The government has launched similar PLI programs in other strategic areas such as solar, semiconductor, automotive and electronics. Under the current uncertainty caused by the spread of the epidemic, war and other factors, The government believes it is important to have a resilient economy that can withstand these shocks. The signing of the recent Indo-Pacific Prosperity Economic Framework (IPEF) is an example of the government’s intention to make it clear that it aims to be the next tech hub.”
Looking ahead, Counterpoint analysts believe that India's mobile phone manufacturing industry will grow by 4% year-on-year in 2022. Furthermore, increasing local added value will drive the 'self-reliant India' concept. Coupled with the fact that the Indian government is also very focused on increasing localized production, through Semiconductor PLI, it aims to make India an important place for semiconductor and electronics manufacturing.
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