- Most of the components used in the TVs of Xiaomi in India are imported and not manufactured locally now
- This new move will likely boost business for the company in India
Xiaomi will bring more component manufacturers of television sets in India to scale up its production in India. The company said 85 per cent of the television sets it sells in the country is assembled locally compared to less than 20 per cent in 2018.
According to a report by Economic Times, Raghu Reddy, head (categories and online sales) at Xiaomi India said that unlike brands which have shifted TV production out of the country, Xiaomi has scaled it up and intends to set up local manufacturing units till component stage.
TV components not locally manufactured
Xiaomi assembles 99 per cent of its smartphones sold in India locally and has asked its component makers to invest more in the country. The company assembles its TVs locally other than the recently launched 65-inch TV. But the components used in the TVs like the open cell panel are not made locally and hence imported.
Many smartphone manufacturing companies have entered the smart TV segment like Xiaomi, Samsung, LG, Motorola and Micromax. According to a research by Research and markets, Smart TV Market in India is expected to grow at a CAGR of 30.2 per cent during 2018 to 2024. Households in India are at a cusp of transition and a shift in preference has been witnessed from conventional TV sets to smart TV sets.
The company also claimed that it has sold 500,000 televisions in India during the festive sales that concluded recently. It stated its TVs were its highest selling product on e-commerce channels Amazon and Flipkart.
