Smartphone Maker Honor Stages India Relaunch, Aims to Start Local Manufacturing in Early 2024

Honor stopped selling its smartphones in India and reportedly retreated last year amid limited marketing budget and less prudent portfolio management.

By Reuters | Updated: 21 August 2023 12:20 IST

Smartphone Maker Honor Stages India Relaunch, Aims to Start Local Manufacturing in Early 2024

Photo Credit: Reuters

Honor Tech aims to capture a 5 percent share of India's smartphone market in 2024

Highlights

Honor has a licensing deal with a newly formed local firm Honor Tech
Its mid-ranged Number series is expected by September
Honor will compete with the likes of Samsung Electronics

Chinese smartphone brand Honor will relaunch in India through a licensing deal with a local company and is aiming to start domestic manufacturing by early next year, its country head told Reuters.

Honor had stopped selling its smartphones in India and reportedly retreated last year amid limited marketing budget and less prudent portfolio management.

"India was never a focus market for the Huawei Technologies-owned Honor until 2020 - when it was forced to spin-off the brand and reassess strategy," said Neil Shah, vice president at Counterpoint Research.

Honor May Release Its Affordable Foldable Handset Next Month

Honor's comeback is underpinned by a licensing deal with a newly formed Gurugram-based firm Honor Tech for an undisclosed "agreed-upon cost" tied to the transfer of technology and hardware.

It will launch three variants of Honor phones in India, with the mid-ranged Number series expected by September.

The company, wholly owned by local shareholders, will make, sell and service Honor-branded smartphones in India.

Madhav Sheth Teases Imminent Launch of Honor Phones in India: Details

"All the phones will be eventually manufactured in India," CEO Madhav Sheth said, without disclosing further details.

"The biggest challenge with the (Indian) government in the past was how can a (Chinese) brand be accountable in India?," said Sheth, a former executive at rival Realme who was credited for its India expansion.

Of late, Chinese businesses have struggled in India with the government banning several apps and stepping up scrutiny on investments to stave off takeover moves from its neighbour.

Honor will compete with the likes of Samsung Electronics - the top seller in India with a near 20 percent market share - followed by Vivo, Xiaomi, Realme, and others, per Counterpoint Research.

Honor Tech aims to capture a 5 percent share of India's smartphone market by sales volumes in 2024, with a revenue of at least Rs. 10,000 crore ($1.20 billion), Sheth said.

Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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