Xiaomi is one of the leading smartphone manufacturing companies in India. The company plans to improve its local production levels by joining hands with BYD India and DBG Technology. By partnering with these two companies, Xiaomi added two more companies to its partners’ lists besides Foxconn and Flex.
As the smartphone demand is ever-increasing, there is a dire need for the company to boost its production to match consumer demand. These partnerships will ensure the company’s ability to meet the local demand as it does not have any immediate plan to expand its global functionality.
“Our India factories are not even fully geared up to meet local demand… Given supply constraints and Covid-19 still being there, I don’t think it will be realistic for us to believe that at least in the next few months or next few quarters, we will be able to export significantly,” told Manu Jain, Xiaomi India’s MD.
DBG Technology is a Chinese company registered in India since 2015. DBG has already started manufacturing Mi smartphones increasing Xiamoi’s manufacturing capabilities by 20%. BYD India, a traditional electric vehicle maker, will commence the manufacturing process of Mi phones in June.
Apart from smartphones, Xiaomi also manufactures various electronic appliances. In fact, the company is the #1 smart TV producer by volume. In an attempt to localise the production of smart TVs, the company has given a manufacturing contract to Radiant Appliances. “Starting January 2021, 100% smart TVs that are selling in India, each one of them is now locally made,” told Manu Jain.
Xiaomi has successfully taken over the budget smartphone category in India. In the last few years, the company has significantly increased its production rate and sells affordable and trendy smartphones. One of the most appreciated qualities of Xiaomi is that the company offers several variants depending on the user’s choice.
By partnering up with BYD and DBG, the company will further improve its manufacturing abilities. After this strategic partnership, Xiaomi now has eight manufacturing units, including Flex, Foxconn, DBG, BYD, Dixon Technologies, and Radiant. Xiaomi has effectively grown its number of employees from 50,000 to 60,000 in a year by making such excellent partnerships.