Targeting 23-30 million units next year, Motorola ramps up smartphone production in India amid rising US tariffs on Chinese imports and shifting manufacturing trends.
Motorola, owned by Lenovo, is set to significantly increase its smartphone production and exports from India. The company plans to raise its annual production volume from 13 million to 23-30 million units in the next fiscal year, with a large portion destined for export, particularly to the US.
This expansion comes as a response to rising US tariffs on Chinese imports, particularly mobile phones, and the broader trend of companies shifting manufacturing away from China.
Motorola’s manufacturing partner in India, Dixon Technologies, has reported strong growth, with monthly production exceeding 1 million units. Atul Lall, managing director of Dixon, noted in an Economic Times report that the order book remains healthy for the coming months, including substantial export orders.
Currently, Motorola exports around 20-25 per cent of its production to North America, and this figure is expected to rise significantly, potentially reaching 12-18 million units next year.
The shift to India is part of a broader strategy by Motorola to take advantage of India’s cost-effective labour and favourable policies under the government’s Production Linked Incentive (PLI) scheme.
However, the company is also monitoring the impact of potential US tariffs on Indian imports, which could take effect from April 2. If these tariffs are imposed, it may reduce India’s production target and shift some operations to regions like Vietnam, where tariffs are lower.
Industry experts are urging the Indian government to negotiate favourable trade agreements with the US to ensure India remains competitive in the global smartphone manufacturing sector.
Motorola’s decision comes at a time when its parent company Lenovo reveals plans to transition all PC production for the Indian market to local manufacturing within the next three years.
