Chinese smartphone brands boost investment in India amid improving relations
What's the story
After a long lull, Chinese smartphone makers are ramping up their investments in India.
The companies had been on the backfoot since 2020, facing allegations of money laundering and tax evasion.
However, as India-China diplomatic relations improve, the likes of OnePlus, POCO, and Realme are bolstering their offline retail presence by opening new stores and investing in existing ones across the country.
Major investment
OnePlus commits ₹6,000 crore to Project Starlight in India
OnePlus has promised a whopping ₹6,000 crore investment in the next three years for its ambitious Project Starlight.
The project will focus on improving research and development (R&D), expanding retail, enhancing manufacturing quality control, and improving customer service standards.
Robin Liu, the newly appointed India CEO of OnePlus, confirmed the commitment, adding that a major chunk of this investment will go into product development.
Expansion plans
Realme and POCO increase offline presence
Realme, India's fifth-largest smartphone brand, is also eyeing major investments to fuel its 2025 expansion strategy. The company plans to strengthen its offline retail presence by launching new retail and experience stores.
On the other hand, POCO is countering allegations from offline retailers of prioritizing online sales channels over traditional ones.
POCO India head Himanshu Tandon confirmed 2024 was a transition phase for the brand as it entered the offline market.
Strategic shifts
Adapting strategies amid geopolitical changes
Since the 2020 border standoff, Chinese companies have been recalibrating their India strategies, streamlining operations, and exploring new business models.
Some are even considering joint ventures with Indian firms, often operating with minority stakes.
This strategic shift highlights how these companies have adapted to changing geopolitical and market dynamics, ensuring their continued relevance in one of the world's largest consumer markets.
Market rebound
Chinese brands regain market share in India
Despite an initial dip in market share after the standoff, Chinese brands have found their footing in the Indian market. Their aggressive pricing and cutting-edge technologies have kept them in the game.
As per Counterpoint Research, the combined market share of Chinese brands, which dropped to 67% in Q4 2020, surged to nearly 75% in the July-September quarter of 2024—returning to pre-standoff levels of 2019.