Indian mobile phone manufacturers are planning a significant comeback

28 Jun 2023 , 11:49 AM

At a time when Chinese manufacturers are under government pressure and have also largely left the entry-level sub-Rs 8,000 pricing sector, once-popular Indian mobile phone brands Micromax, Karbonn, and Lava are preparing a significant comeback in the smartphone segment.

Since consumers are obliged to buy either reconditioned cellphones, on credit plans, or hold off on their purchases at entry-level pricing, these firms claimed they hope to regain market share. Karbonn plans to release a smartphone for Rs 4999, while Micromax has set a price of Rs 5999 but is in discussions with telecom providers to package the device at Rs 4999. Lava plans to release further 5G devices for less than Rs 10,000.

Pradeep Jain, managing director of the Jaina Group, which owns the Karbonn brand, declared that there has never been a better time to aggressively relaunch the Karbonn smartphones in India.

The government also wants the Indian smartphone companies to return because there is a gap in the sub-Rs 10,000 segments. 4G will continue to exist for at least the next three years, and Karbonn will concentrate more on this market, he said.

Sunil Raina, president and CEO of Lava, claimed to ET that the company has increased its aggressiveness in the smartphone market during the past year. ‘Our after-sales service, software, and products have all improved. We expanded by two times last year compared to the year before, and this year’s growth is already three times that of last year, he claimed.

An executive who talked to ET claimed that Micromax would not compete on price with weak hardware to quickly win market share. Instead, it aims to introduce top-notch vehicles. Being debt-free, the company would finance operations through internal accruals and may even consider selling a portion to raise money, according to him.

The head of another Indian firm, who asked to remain anonymous, stated that the government wants to make sure that the Chinese brands do not engage in pricing discrepancy by selling at a loss. ‘That was their entry approach, which completely destroyed the Indian brands. A level playing field exists now, he claimed.

Before Chinese handset companies like Oppo, Vivo, and Xiaomi entered the market, the majority of the phones produced by Indian firms were designed and manufactured by Chinese partners. But this time, they are domestically designing and producing the handsets.

So much so that Rajeev Chandrasekhar, the union minister of state for electronics and technology, tweeted last month that he had upgraded his previous ‘#ProudlyIndian’ Lava Mobile.

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