Xiaomi Considering Manufacturing Phones in India: Report

While talking to WSJ, Xiaomi India head Manu Jain has revealed that the company has hired legal advisers to "investigate the regulatory aspects of manufacturing in India."

"We always thought that our manufacturing would be based out of China. But India is beginning to become so important for us that we started to think whether we should set up our own manufacturing," added Jain.

He also revealed that it would take at least six months before the Xiaomi finally makes a decision on whether it should make phones in India.

(Also see: Personally Tech With Xiaomi India Head Manu Jain)

The Chinese smartphone manufacturer according to Canalys overtook Samsung in the Chinese smartphone market in the April-June period this year, tripling its sales from the same period last year to 15 million units. Xiaomi has enjoyed much success in India this past year as well, with strong sales figure of the Mi 3 and Redmi 1S smartphones. Since the Mi 3's launch in July, the company has sold over 500,000 of its smartphones in the country, notes the report.

Xiaomi has been making sales records online with the entire inventory of both the Mi 3 and Redmi 1S smartphones going out of stock within few seconds in each flash sale on Flipkart, the company's exclusive retail partner in the country.

(Also see: Lenovo to Counter Xiaomi With New Smartphone Brand Next Year)

A manufacturing unit in India would help Xiaomi boost its production overall, something customers unable to get their hands on Xiaomi smartphones have been clamouring for, while also offering smartphones at an even lower price without as many duties and taxes.

Xiaomi's Vice President of International Operations, Hugo Barra, last week in an interview revealed the new Redmi Note can be expected to launch in India within the next two months. He said, "A date is not decided yet. Hopefully we will have devices ready to sell in the next two months."

(Also see: Ex-Googler Jai Mani Joins Xiaomi India as Lead Product Manager)

Barra couldn't confirm an India launch date for the company's latest flagship, the Mi 4. "We don't have a date for Mi 4 yet. I am going to stick with what I said earlier which is still the plan -launch it late December 2014 or early January 2015. I don't think the Redmi Note would conflict with Mi 4 even if we launch them together."