Chinese smartphone makers, Oppo and Vivo, have apparently put a hold on all investments in India related to manufacturing, given the current geopolitical situation. The local government recently banned 59 Chinese apps, which seems like just the tip of the iceberg to much stricter actions that might follow later.
For those unaware, instability and military clashes between the Indo-China borders have led to increasing friction between the two nations. Earlier today (3rd July 2020), we had also reported on various brands facing issues since shipments were being held back, causing delays. And now, Oppo and Vivo are tempering their ambitions in the region. Notably, both smartphone manufacturers have yet to register for India’s production-linked incentive (PLI) scheme.
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According to several executives from affected Chinese smartphone brands, the focus during this period was to meet demands post COVID-19 lockdown and invest in manufacturing for the domestic market and exports as well. Although now, these have been put on hold. Vivo had been panning an investment of Rs 7,500 crores (roughly 1 billion US Dollars) to set up a local manufacturing plant, which is the largest investment from any OEM in the region.
Similarly, Oppo was also planning on setting up an Electronic Manufacturing Cluster (EMC) in Greater Noida along with other companies to manufacture electronics and support accessories. It had a total investment of Rs 3,500 crores (roughly 500 million US Dollars). Foxconn too had announced higher investments, but with the geopolitical instability rising, these plans have been put on hold for the moment, since recovery would take time.
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(Source)
