Motorola, the smartphone brand owned by Lenovo, is set to double its smartphone exports from India starting next year, with a particular focus on the North American market. The company, which has been a beneficiary of the Indian government’s production-linked incentive (PLI) for mobile phone manufacturing, aims to increase shipments to North America, a market predominantly served from China.

Export Strategy: Motorola plans to double its smartphone exports from India in 2024, with a specific emphasis on North America. The company has been exporting 20-25% of its manufacturing capacity to North America and aims for faster growth in exports compared to its sales in the Indian market.

PLI Benefits: Motorola has been a beneficiary of the PLI scheme, which encourages local manufacturing and exports from India. The company exported over 1 million smartphones from India in 2022 and has already shipped 800,000 units as of October 2023.

Domestic Value Addition: Motorola has reportedly achieved a domestic value addition of 50-60%, excluding semiconductor parts, surpassing competitors like Samsung and Apple in this aspect. The company aims to localize more components within India.

Geopolitical Context: The expansion plans align with India’s push for increased exports and localization in the mobile phone industry. Motorola’s move comes at a time when geopolitical tensions between the US and China create an opportunity for Indian manufacturing and exports.

Partnership with Dixon: Motorola’s partnership with local electronics contract manufacturer Dixon Technologies has been instrumental in its manufacturing success in India. Dixon reported increased orders from Motorola, contributing to significant revenue growth.

Commitment to Localization: Motorola emphasizes the importance of localizing more components within India to offset cost disadvantages. The company is optimistic about achieving this goal within the remaining three years of the PLI scheme.

Motorola’s expansion and focus on exports from India underscore the growing significance of the country in the global smartphone manufacturing landscape. The company’s commitment to localization aligns with broader industry trends and government initiatives aimed at boosting the Indian manufacturing sector.

By Admin

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