Chinese brands shift to local sourcing in India

Chinese smartphone and electronics brands, including Oppo, OnePlus, and Vivo, are shifting their strategies to rely less on imports from China. This change is mainly due to new regulations making it harder to import certain components, which require clearances from the Bureau of Indian Standards. In Kolkata, these brands are focusing on building a local supply chain in India. Companies like Haier and Hisense are investing in local production to increase the value of their products. Haier, for example, is investing 300 crore rupees to make components in India, including parts for refrigerators and televisions. Vivo has partnered with over 30 local suppliers, while Oppo aims to double the local value added to its smartphones by 2026. This push for localization comes as India tightens foreign direct investment rules for Chinese firms and applies more pressure for local production. Indian manufacturers like Tata Electronics and Dixon Technologies are also entering the component manufacturing sector. Currently, Chinese brands source around 15% of smartphone components locally, but this is expected to increase significantly over the next few years. Vivo reported that all its smartphone motherboards in India are now assembled locally, along with most packaging materials and components like batteries. The company's efforts also involve localizing high-value components, while Oppo plans to strengthen India's semiconductor ecosystem.