Acer Aims for 60% Made-in-India Laptops, Sets Sights on Becoming No. 2 in the Indian Market

Acer is boosting its efforts to manufacture more laptops in India, aiming to produce 60% of its laptops locally by the end of 2024. Currently, 40% of Acer’s laptops sold in India are made in the country, but the company is pushing to increase this as part of its strategy to expand in the Indian market.

Acer plans to challenge Dell for the position of India’s second-largest PC brand. “We had a strong year, and we’re focused on growing even more in 2024,” said Sudhir Kohli, Acer India’s Chief Operating Officer.

This move aligns with India’s PLI (Production-Linked Incentive) Scheme 2.0, which encourages local manufacturing of laptops and other IT hardware. The Indian government expects the scheme to generate $42 billion in IT hardware production.

Acer has seen growth in India, despite a tough market. While overall PC sales dropped in early 2023, Acer’s sales decline was less severe than other top brands. In fact, Acer saw a 29% increase in sales from January to March 2023, making it the third-largest seller of laptops and tablets in India.

Looking ahead, Acer plans to expand into home appliances and balance its sales between businesses and consumers. By the end of 2024, it hopes to achieve an even split in sales between these two segments.

However, some analysts are cautious about Acer’s future. A report from Icra Ltd noted that Acer’s profit margins are low due to fierce competition in the PC market, which limits the company’s pricing flexibility.

Acer is also involved in the education sector, supplying affordable tablets for schools and rural markets in India. Despite challenges, Kohli expressed confidence in India’s growing manufacturing capabilities and praised the progress made by local partners in improving production and supply chains.