 "Nokia phone maker HMD moves production to India, urges suppliers to join")
HMD Global, the Finnish company known for producing Nokia-branded feature phones, is relocating a significant portion of its manufacturing operations from China as part of its strategy to make India its central manufacturing hub.
The company is also in talks with electronic component suppliers worldwide to encourage them to set up factories in India, further supporting its export ambitions, according to a report by Moneycontrol.
Impact of US-China trade tensions
HMD is positioning itself to benefit from the ongoing trade war between the US and China, particularly if the new US administration under President Donald Trump imposes stricter tariffs on China. The company aims to capitalise on the changing geopolitical dynamics by shifting operations to India.
The report quoted Ravi Kunwar, CEO and V-P for India and Asia Pacific at HMD, as saying that the company is gradually shifting its supply chain, sourcing, and logistics infrastructure to India.
A bulk of its operations previously in China are now being moved to India, and this helps to strengthen the company's export strategy, Kunwar said, adding that the proportion of products being exported from China is decreasing, while those shipped from India are increasing.
Kunwar further said that HMD has already moved significant manufacturing components, including critical supply chain teams, from China to India. He added that this shift aligns with the company's broader strategy to establish India as a competitive alternative for export manufacturing.
Expanding exports to new markets
HMD currently exports Nokia feature phones and smartphones to West Asia and Africa from India. With the evolving geopolitical situation and increased focus on supply chain security, the company plans to expand exports to the US and Europe.
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The report quoted Kunwar as saying that the company is encouraging parts suppliers from other countries to establish production units in India.
Component manufacturers see the potential in India's domestic market and export opportunities, and a major shift will happen once there is clarity on government policies, he said, referring to the Ministry of Electronics and Information Technology's (MeitY) upcoming electronics component manufacturing scheme.
HMD relies heavily on Dixon Technologies, an electronics manufacturing services provider, for most of its feature and smartphone production. The company has also partnered with Zet Town India, a subsidiary of Zetwerk, to enhance its manufacturing capacity for feature phones made in India.
HMD’s market strategy
Earlier this year, HMD stopped using the Nokia brand for its smartphones, opting for a fresh brand identity. The company is now concentrating on the mid-range smartphone segment, with its new Fusion smartphone featuring attachable accessories like Smart Outfits for gaming and photography.
The report quoted Kunwar as saying that the revamped brand identity and new product offerings are designed to capture both value and volume market share in India.
We continue to focus on the Rs 10,000-Rs 15,000 price range, and next year, we plan to target the sub-Rs 10,000 segment, he added.
HMD’s India strategy for 2025
HMD’s strategy for India through 2025 is built on three pillars: secure devices, detox devices (non-smartphones and feature phones), and device financing.
Security concerns are growing not just for governments and the military, but for consumers as well, Kunwar said, noting that the security segment is expanding rapidly.