India seeks to restrict Chinese smartphones cheaper than $150 – report

 

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ndia is seeking to restrict Chinese smartphone makers from selling devices cheaper than 12,000 rupees ($150) to kickstart its faltering domestic industry, dealing a blow to brands including Xiaomi, according to Bloomberg News.

The move is aimed at pushing Chinese giants out of the lower segment of the world’s second-biggest mobile market, the report said. It coincides with mounting concern about high-volume brands like Realme and Transsion undercutting local manufacturers, it said.

Indian firms such as Lava and MicroMax rapidly gained popularity after their launch over a decade ago, but have since lost market share to stiff competition from Chinese players.

Exclusion from India’s entry-level market would hurt Xiaomi and its peers, which in recent years have increasingly relied on India to drive growth while their home market endures a series of Covid-19 lockdowns that crippled consumption. Smartphones under this price contributed to a third of India’s sales volume for the quarter through June 2022, with Chinese companies accounting for up to 80 percent of those shipments, according to market tracker Counterpoint.

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India cited security concerns in banning more than 300 Chinese apps, and has also tightened rules for Chinese companies investing in India.

Xiaomi and rival Vivo are being investigated by India’s financial crime fighting agency for alleged illegal remittances and money laundering. Both deny any wrongdoing.