Chinese telecoms giant Huawei will start making smartphones in India next month, the company said on Friday, joining a wave of compatriots setting up in one of the world's biggest mobile phone markets.
The plant will be operated with the Indian arm of electronics manufacturer Flextronics International Ltd in Chennai, Huawei said in a statement.
The Chinese firm will also expand its Indian retail network, increasing to more than 50,000 the number of outlets it partners with by the end of the year.
As growth in China stagnates, India, the world's fastest-growing smartphone market, provides Huawei and rivals like Xiaomi Inc with new opportunities to expand.
Announcing the manufacturing facility from Delhi, Ravi Shankar Prasad, Honb'le Union Minister, Information & Technology, Law and Justice said, "I would like to congratulate Huawei on their commitment to pursue their 'Make in India' vision. The Government of India is pleased to see so much enthusiasm for our "Make in India" initiative. We are working towards making India an electronic manufacturing hub. As India is set to become the second largest smartphone market, our government would like to invite even more businesses to come and manufacture in India. This is an opportune time to start manufacturing from India. The smartphone landscape in India is growing every day and such initiatives by technology leaders will help accelerate the growth of local manufacturing industry in India".
Jay Chen, CEO, Huawei India said, "We have been present in India for the last 16 years and as part of our India focus, we have been consistently expanding our footprint in the market. This year especially has been of significance in our India journey. We recently launched our world class GSC in Bengaluru and the start of manufacturing in India is an affirmation of our commitment to India and supports the Make in India campaign. We are convinced about the growth potential and future of India and we'll keep looking for opportunities to increase our presence here".
© Thomson Reuters 2016
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