Xiaomi Plans to Double Device Exports from India to 700 Million by 2034 – Aiming for Global Growth

Bengaluru: Xiaomi plans to double its shipments of devices from India over the next decade, according to Muralikrishnan B., president of Xiaomi India. The company aims to export 700 million devices from India by 2034. So far, Xiaomi has shipped 350 million devices in the ten years up to 2023, including 250 million smartphones.

To achieve this goal, Xiaomi is increasing its smartphone production and assembly in India. The company plans to source 55% of the non-semiconductor parts of a smartphone locally within the next two years, Muralikrishnan said.

Despite a 29% decline in shipments last year, Xiaomi remained the fourth top-selling brand in India’s smartphone market, as reported by IDC India. Xiaomi, known for its affordable smartphones and strong presence in rural areas, has been in India since 2014.

Muralikrishnan noted that Xiaomi will now focus on the ₹10,000 to 15,000 price range, moving up from the sub-₹10,000 segment. Inflation and rising component costs have pushed up smartphone prices, but users in the entry-level segment still demand advanced features at affordable prices.

Regarding unsecured consumer financing for smartphone buyers, Muralikrishnan mentioned that the Reserve Bank of India (RBI) has a cautious stance on such financing methods.

Focus on AI

Xiaomi India’s head emphasized the importance of artificial intelligence (AI) in making smartphones more useful for customers. He provided examples like AI managing phone charging based on sleep patterns and optimizing battery usage by connecting to cell towers efficiently while driving.

Muralikrishnan highlighted the need to meet user aspirations for premium features and emphasized localizing the smartphone supply chain. He mentioned that he was unaware of any plans for the Beijing-based company to list its Indian unit.

India Expansion Strategy

Xiaomi aims to increase its supply chain share and smartphone manufacturing in India, following the Indian government’s push for localization. Rajeev Chandrasekhar, former Union minister of state for electronics and IT, stated in May 2023 that Xiaomi partnered with Noida-based contract manufacturer Dixon Technologies to assemble and export smartphones. Dixon is setting up a large assembly facility in Noida to produce up to a million smartphones per month.

Xiaomi’s sales declined after leading the market for five consecutive quarters until the end of 2022. To regain its market share, the company has introduced a three-year strategy focusing on online and offline sales, building a complete device ecosystem, and enhancing its appeal in premium categories.

As Xiaomi celebrates a decade in India, Chinese companies, including Xiaomi, have faced scrutiny from Indian enforcement agencies over concerns about tax evasion and money laundering. The Enforcement Directorate is investigating Vivo for suspected money laundering and claims that Vivo, Oppo, and Xiaomi evaded taxes totaling ₹9,000 crore between FY19 and FY23.