Motorola working to double its exports with focus on North American market

Chinese smartphone maker Motorola is planning to double its exports from India, according to The Economic Times (ET). Motorola is an early beneficiary of the government's production-linked incentive (PLI) for mobile phone manufacturing. To this end, the company will expand its Indian shipments to North America, which manufacturers from China currently dominate.

Elaborating on the subject, Executive Director of Motorola, Asia Pacific, Prashant Mani was quoted in the report as saying, "North America is our primary export market from India. Currently, we have been exporting 20-25 per cent of our capacity to North America, and every year, we are seeing step-ups in terms of growth. We are planning to double our exports next year (in 2024)."

Motorola exported more than 1 million units of smartphones from India in 2022. These were manufactured locally by the contract manufacturer, Dixon Technologies. In 2023, as of October, the company has exported 800,000 units, the ET report said, citing market trackers.

Motorola's export plans

Motorola wants to achieve sustained and rapid growth in exports rather than sales in the Indian market, Mani told ET. He added that the Indian government wants exports and localisation to grow. According to industry experts, Motorola has already achieved a domestic value addition of 50-60 per cent. This figure excludes semiconductor parts and is higher than that of companies like Apple and Samsung, the ET report said.

The development is significant because the government is increasing the pressure on Chinese smartphone brands to expand their local manufacturing and start exports from India. As things stand, Apple and Samsung dominate the exports from India and hold a 90 per cent share.

An industry expert told ET that India is ideally placed to make the best out of the current geopolitical situation between the US and China. Apple's decision to ramp up its presence in India away from China is a testimony to this. The development is significant as Washington and Beijing continue to clash over issues like trade and technology, among others.

What is the PLI Scheme?

Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing was announced on April 01, 2020, through a gazette notification. The scheme offers the manufacturers an incentive to boost domestic manufacturing. The government intended to attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking, and packaging (ATMP) units.