The good news is that shipments of smartphones made in India grew year on year in Q2 2022. But it is good news that it has an asterisk. In it, the list is dominated by foreign brands. None of the local brands seem to be on top.
For the record, Lava is the leading mobile phone player among Indian brands in terms of shipments. It is the only company that is designing its products in India. Lava leads Made in India shipments, with around 21% share in the feature phone segment.
According to Counterpoint Research, shipments of smartphones made in India were up 16% year-on-year in Q2 2022, reaching over 44 million units. Oppo, with Realme and OnePlus also in its scope, topped the list with a share of 24%. Samsung came in second and Vivo in third.
The reason given for the greater acceptance of phones made in India is that companies are pushing for higher production to meet the criteria of the Production Linked Incentive Scheme (PLI). The upcoming holiday season will further boost Made in India shipments, Counterpoint Research said.
Contract manufacturers do well
Breaking down shipments, the research report said that in-house manufacturing contributed to nearly 66% of total Made in India smartphone shipments, while the rest of the 34% shipments came from third-party EMS (Electronic Manufacturing Services).
Among third-party EMS players, Bharat FIH, Dixon and DBG were the main players during the quarter. Bharat FIH manufactures smartphones for Xiaomi and Dixon Technologies for Samsung. DBG also handles some manufacturing for Xiaomi.
Padget Electronics (396% P/Y), Wistron (137% P/Y) and Lava (110% P/Y) were the fastest growing smartphone manufacturers during the quarter in terms of shipments.
In the wearable segment, TWS led in terms of domestic manufacturing with a contribution of 16%, followed by necklaces and smartwatches.
Effective PLI scheme in many industries
The Counterpoint report further said that the Indian government’s effort with various PLI schemes is paying dividends in product segments such as smartwatch, TWS, neckband and tablet. Optiemus leads Made in India shipments for smartwatches with over 75% share. In TWS, Optiemus, Bharat FIH and Padget are the top three manufacturers. In the necklace category, VVDN and Mivi have a 90% share of Made in India shipments. In the tablet category, Wingtech, Samsung and Dixon are the main players, while in the TV category, Dixon, Radiant, Samsung and LG have a 50% share of Made in India shipments.
In its previously released vision document, the government considers consumer electronics segments such as smartphones, laptops, tablets, TVs, TWS and electrical components among the most promising for India’s transformation as an electronic hub. To help drive more initiatives under the Make in India and Digital India themes, the government in its latest budget increased the total allocation to $936.2 million.
In a big shot in the arm for the Indian government’s make-in-India initiative, Google is considering moving some of its Pixel phone production to India.