Motorola’s Ambitious Export Plans
Motorola, the smartphone brand under Lenovo’s ownership, has set ambitious plans to double its smartphone exports from India in the upcoming year by significantly increasing shipments to North America. Prashant Mani, the Executive Director for Asia Pacific at Motorola, revealed that North America is their primary export market, constituting 20-25% of the current export capacity, with plans to double these exports in 2024.
Government Incentives and Early Success
Motorola has been an early beneficiary of the Indian government’s production-linked incentive (PLI) for mobile phone manufacturing, introduced in 2020. This initiative aims to incentivize domestic production, and Motorola’s participation has contributed to the company’s export success.
In 2022, Motorola, working in collaboration with contract manufacturer Dixon Technologies, is expected to have exported over 1 million smartphones from India. By October of that year, the company had already shipped 800,000 units, showcasing a substantial growth trajectory.
Anticipating Growth and Government Objectives
Prashant Mani emphasized that the company anticipates faster export growth than domestic sellouts, especially with a projected 50-60% growth in domestic sales. He outlined that the Indian government emphasizes two key objectives for mobile phone companies: boosting exports and promoting localization.
Reports suggest that Motorola has achieved an impressive 50-60% domestic value addition, excluding semiconductor parts, surpassing competitors like Samsung and Apple. This accomplishment aligns with the Indian government’s vision to position the country as a global hub for electronics production, including smartphones.
India’s Tech Landscape and Global Aspirations
India’s push to attract Chinese smartphone companies for local manufacturing and exporting has gained momentum, driven by geopolitical tensions and government incentives. Notably, Apple has shifted part of its iPhone production to India, with plans to produce iPhones worth INR 1 Lakh Cr by March 2024. Consequently, Apple has become the largest smartphone exporter from India, followed by Samsung.
Motorola’s Export Expansion: A Positive Development
Motorola’s expansion in exports signifies a positive development for India’s electronics production aspirations, reflecting the success of government initiatives and industry collaboration.
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