Motorola, the smartphone brand owned by China’s Lenovo, has announced its plans to double its exports from India starting next year. The company aims to achieve this by increasing shipments to North America, which is currently its primary export market from India. Currently, the company exports around 20-25% of its capacity to North America, and it aims to increase this percentage significantly in the coming years.
Motorola’s decision to expand its exports from India comes at a time when the Indian government has been encouraging smartphone brands to deepen local manufacturing and increase exports. Apple and Samsung currently dominate India’s smartphone exports, holding a 90% market share. However, Motorola believes it is well-positioned to serve other markets, such as the US, Brazil, and Japan, where it enjoys a significant market share.
In 2022, Motorola exported more than 1 million smartphones from India, manufactured by local electronics contract manufacturer Dixon Technologies. As of October, the company had already exported 800,000 units. With its plans to double exports, Motorola aims to sustain faster growth in exports compared to its sales in the Indian market. During its latest earnings call, Dixon announced a surge in its order book from Motorola during the second quarter of FY24, contributing to a remarkable 77% year-on-year revenue growth. Saurabh Gupta, Dixon’s Chief Financial Officer, highlighted their anticipation of increased export volumes from Motorola.
Exports and localisation are the two main objectives set by the Indian government for mobile phone companies. Motorola has already achieved a domestic value addition of 50-60%, excluding semiconductor parts, which is higher than its rivals like Samsung and Apple. The company plans to further increase component sourcing from India and expand localisation efforts to offset cost disabilities and enhance its manufacturing presence in the country.
RTM Watch’s Take
Motorola’s decision to double its exports from India reflects the company’s confidence in the Indian market and its commitment to leveraging the country’s manufacturing capabilities. By focusing on North America as its primary export market, Motorola aims to tap into the potential of the region while diversifying its supply chain away from China. With its strong market share in key markets like the US, Brazil, and Japan, Motorola has a solid foundation to drive export growth and contribute to India’s smartphone manufacturing ecosystem.
