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Oppo, Vivo, Xiaomi may get expensive in India, here's why

Chinese companies have threatened to move their manufacturing plants to other countries amid the ongoing strictness in India.

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In the Indian smartphone market, only 3 names are visible to those who purchase inexpensive phones. Xiaomi, Oppo, and Vivo. Only the smartphones made by these three Chinese companies fit comfortably in customers' pockets and minds. The country's low-cost smartphone manufacturers, like Micromax and Lava, have vanished as a result of the magic these companies have worked with their technology in recent years. However, these Chinese businesses have now devised a strategy that will lessen their influence in the Indian market. Customers will also find it challenging to purchase affordable phones in case the manufacturing plant closes in India.
 
Government’s strictness on Chinese smartphones has been going on for a long time now. Serious accusations of tax evasion against Chinese companies are the cause of this. Long-lasting controversy has resulted from Chinese companies' actions being made public. In this matter, the companies have also provided clarification, but the government has not yet provided any relief, and as a result, these businesses are now dissatisfied.
 
According to the reports, Chinese companies have threatened to move their manufacturing plants to other countries amid the ongoing strictness in India. Report further states that Chinese smartphone makers can set up manufacturing plants in countries like Indonesia, Bangladesh, Nigeria.
 
This action is crucial because it was recently reported that the Indian government would be unable to produce any phones for less than Rs. 12,000 foreign companies. Following this, a statement from Chinese businesses discussing the potential for discovering foreign markets was released. The government, however, later turned down this plan. Even back then, it was asserted that the government could take such action in an effort to resurrect businesses in the low-cost phone market like Lava and Micromax. But following the government's denial, it was believed that Chinese businesses could operate safely in the Indian market.
 
Chinese companies can set up their manufacturing plants anywhere other than India for expansion but in a big market like India, abruptly stopping manufacturing can become a reason for companies to bid farewell to the Indian market. In such a situation, it will not be easy to recover from the impact on the earnings of these companies due to the decrease in sales here.
 
Obviously, the Indian government issued a clarification right away in the case of phones priced under Rs. 12,000 in India. With this, the Chinese companies' threat to halt production may turn out to be a hoax. This appears to be a plan to reduce government repression.
 
These Chinese smartphone companies have received notices from the Directorate of Revenue Intelligence regarding allegations of tax evasion. They are the subject of an investigation. In addition, India has prohibited over 300 Chinese apps in recent years. Popular programmes like WeChat and Tik Tok are also included in this. It will be interesting to see if Chinese businesses really have the guts to pursue business from a sizable market like India in such a scenario.
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