On June 14th, Gizcoupon reported that according to the Economic Times of India on June 13th, the Indian government has once again made demands on Chinese smartphone brands operating in India, including Xiaomi, OPPO, vivo, and realme. They are required to appoint Indian nationals as CEOs, COOs, CFOs, and CTOs, among other top executive positions.
Additionally, as reported by ABP News India, the government has also mandated that Chinese smartphone manufacturers outsource their manufacturing contracts to Indian companies. Furthermore, they are encouraged to involve local enterprises in manufacturing and exporting through Indian distributors. Recently, government officials met with Xiaomi, OPPO, vivo, and realme to discuss the aforementioned issues.
Gizcoupon has observed that many Chinese smartphone manufacturers operating in India have already appointed Indian executives. For instance, realme has an Indian CEO named Madhav Sheth. Other smartphone manufacturers have also recruited local employees to penetrate the Indian market better. According to ABP News, Xiaomi India has been actively investing in local talent, cultivating local managers, partners, and distributors. Moreover, they have established a core team composed of Indian professionals.
On June 13, the Indian Enforcement Directorate (ED) issued a document stating that it had formally notified Xiaomi India, relevant executives of the company, and three banks. It states that they were involved in illegal transactions amounting to 55.51 billion Indian rupees (approximately $670 million). In response, Xiaomi officials reiterated their commitment to lawful. They compliant operations worldwide, adhering to the relevant laws and regulations of each operating country, as they previously stated.
Furthermore, according to research firm TechInsights, in the first quarter of 2023, the top three market shares in the Indian smartphone market were held by Samsung (20%), vivo (18%), and Xiaomi (17%). Chinese smartphone brands collectively account for approximately 50% of the market share in India.
