Indian smartphone companies: For the third year in a row in FY24, Indian smartphone producers like Lava and Bhagwati (Micromax) are having difficulty reaching their incremental targets under the government’s production-linked incentive (PLI) plan. This demonstrates the difficulties with the government’s plans to support local industry.
According to industry insiders who spoke to the publication, because Dixon Technologies has signed new contracts and secured sizable orders, it is anticipated that it will be an exception among local manufacturers. Local smartphone brands like Lava may need more time to establish themselves, according to a report that cited an industry expert, while major global manufacturers like Foxconn, Wistron, and Samsung have successfully adapted the PLI scheme for mobile phones. Indian smartphone companies are struggling to meet PLI targets for FY24.
SN Rai, a co-founder of Lava, stated that although the business fell short of the PLI scheme’s incremental production targets in the fiscal year 2022–2023 (FY23), it is still optimistic that it would meet them in the following year (FY24). Lava will achieve the goals thanks to a brand resurrection and greater government purchases of handsets from Indian companies, Rai noted.
Other regional businesses, such as Optiemus Electronics and Bhagwati Products, which makes Micromax cellphones, are less likely to meet their goals for the current fiscal year, according to experts.
Despite receiving help from the government, Bhagwati has been unable to obtain significant orders from Chinese smartphone makers because of constraints including restricted capabilities and poor capital expenditure.
While local manufacturers struggle, Foxconn (Hon Hai), Wistron, and Samsung, three of the world’s leading smartphone manufacturers, have met their goals and are certain to do so again this year. According to industry insiders, Pegatron, the third iPhone maker in India, is also anticipated to achieve the goals for FY24.
The Center published a gazette notice on April 1, 2020, announcing a production-linked incentive program to promote domestic manufacturing and draw significant investments in the production of mobile phones and particular electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units. One of the biggest beneficiaries of the program is Apple, which leads local manufacturing and exports out of India.
