Aiming for continued growth and reduced imports, Lenovo plans to double its local production in India to over 12 million units of smartphones and laptops.
Chinese tech giant Lenovo is reportedly set to increase its local production in India, aiming to produce over 12 million units of smartphones and laptops in the current fiscal year, more than double the 6.4 million units produced in 2023-24.
According to a report by the Economic Times, this expansion follows the company’s strategy to scale up production annually, with plans to manufacture nearly all its personal computer models locally, having already achieved 100% local production for its Motorola smartphones.
Lenovo’s growth in India has been supported by the government’s Production-Linked Incentive (PLI) scheme, encouraging global brands to increase domestic manufacturing. In the previous fiscal year (2022-23), Lenovo produced 5 million units locally.
Shailendra Katyal, Lenovo India’s Managing Director, confirmed that the company aims to reduce imports gradually while fostering a local component ecosystem. He further outlined that in the next fiscal year, local production is expected to grow by 40% compared to the current year.
Currently, Lenovo manufactures laptops and desktops at its Puducherry plant, which will soon include artificial intelligence (AI) servers, while contract manufacturer Dixon Technologies manufactures Motorola smartphones, tablets, and laptops.
Dixon Technologies has ramped up production, reaching one million Motorola smartphones per month, with some units earmarked for export to North America. The company also began producing Lenovo laptops at its Noida facility in late 2024.
Despite a 14% decline in sales for Lenovo India in 2023-24, with revenues falling to ₹108.47 billion, the company has seen a strong recovery this fiscal, with a 77% growth in sales between April and September.
The success has been primarily driven by higher-value smartphones, with products priced above ₹20,000 leading the growth. Lenovo’s overall group sales, including its smartphone division, reached ₹170.9 billion last fiscal.
