New Delhi: The Indian government is reportedly planning to stop China-based smartphone gamers from selling low-end smartphones (under Rs 12,000) to give a much-needed boost to local brands like Micromax, Lava, Karbonn and others . According to a Bloomberg report citing sources published on Monday, the country is “seeking to stop Chinese smartphone makers from selling devices cheaper than Rs 12,000 ($150) to revive its faltering domestic industry.”Also Read – Can OPPO, Vivo and Xiaomi leave India after tax crackdown? Here’s what Chinese state media reported
The move, according to the report citing people familiar with the matter, could push Chinese smartphone makers “out of the lower end of the world’s second-largest mobile market.” The government’s intentions, if true, will be a blow to companies like Xiaomi and Realme which have captured around 50% market share in India in the sub-$150 (Rs 12,000 and under) segment, according to Counterpoint Research. Also read – Stadia won’t stop: Google denies claim, says ‘bringing more great games to platform’
“Overall, smartphones under $150 contributed 31% of India’s total smartphone volume in the June quarter of this year, compared to 49% in the same quarter of 2018,” the CEO said. research, Tarun Pathak, at IANS. “Chinese brands dominate 75-80% of these volumes, as Jio PhoneNext has grown in recent quarters. This segment is currently dominated by realme and Xiaomi with 50% share,” Pathak added. Also Read – Latest Twitter Feature Update: Twitter May Soon Allow Posting of Images and Videos in a Multimedia Tweet
Here are 10 more points for this great story about Chinese mobile companies in India:
- Shenzhen-based Transsion Holdings, which has brands like Tecno, Infinix and Itel in its kitty, is also a formidable player in the low-end and affordable segment in the country.
- Transsion Group brands (itel, Infinix and Tecno) captured a 12% share of the Indian handset market in the second quarter.
- While itel led the sub-Rs 6,000 smartphone segment with a massive 77% share, Tecno captured the second spot in the sub-Rs 8,000 smartphone segment in the country, according to Counterpoint Research.
- India has already taken a very tough stance against Chinese manufacturers, and recent raids on Chinese smartphone companies like OPPO, Vivo and Xiaomi prove it.
- The Indian government is looking into cases of alleged tax evasion by three Chinese mobile companies – OPPO, Vivo India and Xiaomi.
- OPPO India, Xiaomi India and Vivo India have been served formal notices by the Directorate of Tax Intelligence (DRI) for customs fraud, Finance Minister Nirmala Sitharaman informed the Rajya Sabha last week.
- A show cause notice demanding Rs 4,403.88 crore has been served on OPPO Mobiles India Ltd based on investigation by DRI, while five cases of duty evasion have been registered against Xiaomi Technology India, Sitharaman said in a written response.
- The DRI has detected duty evasion of around Rs 2,217 crore by Vivo Mobile India Private Ltd.
- A show cause notice has been issued to Vivo India demanding customs duty amounting to Rs 2,217 crore, under the provisions of the Customs Act.
- Since April 2020, out of 382 foreign direct investment (FDI) proposals the central government has received from Chinese companies, India has only approved 80 as of June 29.