Xiaomi, Realme, other Chinese smartphones companies may be banned in India; Here's why
Indian government may ban the sale of China-based smartphones players to boost sale of homegrown brands. The move, said the report citing people close to the matter, may push Chinese smartphone makers "out of the lower segment of the world's second-biggest mobile market".
To offer a much-needed boost to domestic companies like Micromax, Lava, Karbonn, and others, the Indian government is apparently seeking to restrict China-based smartphone players from selling low-end smartphones (less than Rs 12,000). The nation "seeks to prevent Chinese smartphone makers from selling gadgets lower than Rs 12,000 ($150) to kick-start its flagging local economy," according to a Bloomberg report that was published on Monday and cited sources.
The move might force Chinese smartphone manufacturers "out of the lower part of the world's second-largest mobile market," according to a report citing people with knowledge of the situation. If the government's ambitions pan out, it will be a death blow for brands like Xiaomi and Realme, which have roughly 50% of the sub-$150 (Rs 12,000 and lower) market share in India.
According to Research Director Tarun Pathak, "Overall, sub-$150 smartphones accounted to 31% of the overall smartphone volumes in India in the June quarter this year, compared to 49% in the same quarter last year."
"In light of Jio PhoneNext's recent growth, Chinese brands account for 75–80% of these volumes. Realme and Xiaomi presently hold a 50% market share in this sector," Pathak told IANS.
Recent raids on Chinese smartphone businesses like OPPO, Vivo, and Xiaomi are proof that India has already adopted a very severe stance against Chinese manufacturers. Three Chinese mobile phone firms, OPPO, Vivo India, and Xiaomi, are the subjects of investigations by the Indian government about potential tax avoidance.
The Directorate of Revenue Intelligence (DRI) sent letters to OPPO India, Xiaomi India, and Vivo India for tax evasion, Finance Minister Nirmala Sitharaman reported to the Rajya Sabha last week. According to a written response from Sitharaman, five charges of customs tax evasion have been filed against Xiaomi Technology India, while a show-cause notice requesting Rs 4,403.88 crore has been sent to OPPO Mobiles India Ltd.