Asus to follow Motorola, Xiaomi to manufacture in India

Following Xiaomi and Motorola, smartphone maker Asus is  considering manufacturing smartphones in India, for which an internal team has been set to study the prospects of manufacturing in the country.

The Taiwanese firm, which currently counts a market share of about 2 per cent in the Indian smartphone market, plans to ramp it up to 5 per cent by 2016.

''India offers a huge opportunity, smartphone penetration is just about 10%. We are focusing on getting the entire supply chain right here and not just assembly. Once the supply chain is there, manufacturing will become easier here,'' Asus chairman Jonney Shih told PTI. He added, the company was keen on manufacturing in India.

''We have set up an internal team to look into this. Before the end of the year, we should have something to announce,'' Asus India regional head (South Asia and country manager) Peter Chang said. He added, the company was in discussions with its manufacturing partners for the project.

Asus is among the growing list of global smartphone makers, including Xiaomi, Motorola and Gionee, that are considering manufacturing in India as the government is pursuing its 'Make in India' initiative. India is one the fastest-growing smartphone markets globally and according to research firm CMR, 19.5 million smartphones were shipped in India in the March 2015 quarter.

''India is growing really strong for us. This market provides a lot of inspiration and gives us inputs for development of new products… We are looking at getting into the top four position in the next one year from the last quarter of this year (October-December),'' Shih said. He added, ''If that happens, India will contribute 10-15% of our global revenues.''

Meanwhile, Asus CEO Jerry Shen yesterday said the company would soon announce a partner to start assembly of its smartphones in India. The announcement came at an event in New Delhi at which Shih, who is on his maiden visit to India, was present.

''We have been talking to manufacturing partners and have finally found the right company. We have invited them to India to kick off our local assembly and we will have an announcement soon,'' Shen told IndianExpress.com.

Shih thanked Indian consumers for the company's growth in the country.

 ''India has a special place in my heart. While Asus cemented its position in the global smartphone market, the Indian market has helped us to be among the top three smartphone sellers in South East Asia,'' said Shih.

''We have shipped 1.5 million smartphones in the country till now from July 2014 with a peak sale of 25,000 units in a day,'' he said at the launch of the company's new smartphones.