Chinese smartphone brands like Xiaomi, Realme, and Oppo dominate the Indian market. Xiaomi leads the Indian smartphone market in Q2 2022. A recent report from Bloomberg claimed that the government is considering banning Chinese smartphone manufacturers from selling phones below Rs 12000 in India, which is about $150 US dollars. However, a recent report suggests the opposite and indicates that this might not be true.
India may not ban Chinese phones under 12000
A recent report from CNBC-TV18 suggests that the Indian government has no plans to ban Chinese smartphone manufacturers from selling phones below Rs 12000. The report further states that even if such a ban is levied by the government, implementing it won’t be an easy task. According to Counterpoint research, 30% of the smartphones sold in India fall under the sub-12000 price range. This means that three of every ten smartphones sold in India fall in this price range.
How will it affect the consumers?
Chinese smartphones make up most of the market share in the Indian smartphone market. Xiaomi is at the top, followed by other Chinese manufacturers. Don’t get me wrong, non-Chinese brands (Samsung and Apple) exist in India. However, they account for only ~20% of the market share in the sub-12000 rupees price range. The rest of the market share belongs to Chinese manufacturers like Xiaomi, realme, OPPO, Vivo, and OnePlus. This clearly shows how the Chinese brands dominate the Indian smartphone market.
When we look at Indian brands like Micromax, Lava, and Karbonn, they account for only about 1% of the Indian smartphone market share. Banning Chinese brands from selling phones under Rs 12000 will affect many people in the country, especially those with a low budget.
It should be noted that Chinese brands like Xiaomi and realme already carry out most of their manufacturing processes in India. However, the Indian government is not satisfied. Perhaps due to the alleged tax evasion by three Chinese tech giants — Xiaomi, Vivo, and OPPO. Meanwhile, the Indian government fully supports the domestic brands despite their abysmal performance in the market. The domestic brands could not compete with the competitively priced Chinese smartphones. The government is trying to change this by removing Chinese brands from the market. However, this does not seem practical as it would hurt the pockets of several price-conscious consumers in India.
We think the Indian government should look for alternate ways of controlling the dominance of Chinese brands and promoting domestic brands. What measures do you think the Indian government should be taking to promote domestic brands and prevent the domination of Chinese brands? Let us know by leaving a comment below.