Motorola Thinking of Setting Up Manufacturing Unit in India

Published By : 29 Jul 2015 | Published By : QYRESEARCH

Mobile phone manufacturer Motorola is looking forward to start its manufacturing operations in India and may reuse its factory located in Chennai. According to a top official, if Motorola goes ahead with the plan, the Chennai facility would be the company’s third manufacturing unit outside Brazil and China. Chinese electronic manufacturing giant Lenovo had bought Motorola from Google. In India, Motorola sells phones only through Flipkart. While the company is looking to expand its market for ‘E’, ‘G’, and ‘X’ range of devices, it is also looking to increase the orders for 4G phones through the partnership with Reliance Jio Infocomm, the 4G venture of industrialist Mukesh Ambani. 

According to Marcus Frost, the senior marketing director for Motorola Mobility across APAC and EMEA regions, India has emerged as one of the largest markets for the company and is growing at the fastest rate. The rising demand from the country has led Motorola to think over manufacturing mobile phones locally. With the government’s initiative to invite foreign players to set up manufacturing units in the country through ‘Make in India’ initiative and offering benefits of local manufacturing over imports, the company is evaluating its decision to set up its manufacturing facility in India. 

The Indian government has incentivised domestic manufacturing by making it cheaper by 11% compared to imports. This has led a number of companies such as Chinese smartphone manufacturer Xiaomi, Japan’s Sony, and Taiwan’s Foxconn to set up factories in India. In 2013, when Motorola was acquired by Google, the company had stopped its manufacturing operations in Chennai. The factory was set up at a cost of INR 170 Crore and had an employee head count of 80. According to sources close to the matter, Lenovo India which had bought Motorola is also looking into the issue of domestic manufacturing. 
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