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India remains a cornerstone for Chinese smartphone manufacturers, even amid heightened scrutiny from Indian authorities. Counterpoint Research data reveals that brands like Oppo, Vivo, Xiaomi, and OnePlus continue to flourish, dominating India’s smartphone landscape with significant contributions to their global sales volumes.
Oppo, a leading player, saw its global smartphone sales volume share from India rise from 31 per cent in 2023 to 36 per cent by Q3 2024. Similarly, Vivo, a sibling under the BBK Electronics umbrella, retained a commanding 58 per cent of its global sales from the Indian market during the same period. These achievements come despite serious legal entanglements. Both Oppo and Vivo faced tax evasion and money laundering allegations, leading to enforcement actions by the Directorate of Revenue Intelligence (DRI) and the Enforcement Directorate. The situation worsened in 2023 with the arrest of key Vivo executives.
Xiaomi, another major brand, has also grappled with regulatory hurdles, including a INR 653 crore import duty evasion notice in 2022 and subsequent show-cause notices under the Foreign Exchange Management Act in 2023. Yet, Xiaomi continues to rely on India, with the market contributing 22 per cent of its global sales by Q3 2024, a slight dip from 23 per cent in 2023.
OnePlus, another BBK subsidiary, remains deeply committed to India, which accounted for 76 per cent of its global sales as of September 2024. Although slightly down from 79 per cent in 2023, this underscores the brand’s strategic focus on the country. In contrast, Realme has diversified, reducing its dependency on India from 46 per cent in 2023 to 37 per cent in 2024, with increased efforts in Europe, Latin America, and the Middle East.
Meanwhile, Transsion, which primarily targets Africa and the Middle East, attributes 10-15 per cent of its global sales to India. However, brands like Huawei and Honor have struggled to gain a foothold in the highly competitive Indian market.
Consumer loyalty
Despite government scrutiny, consumer sentiment toward Chinese brands has remained steady. According to Ankur Malhotra, an analyst at Counterpoint Research, Chinese brands control nearly 75 per cent of India’s smartphone market, highlighting a lack of strong local competition. This dominance is a testament to India’s appeal as the second-largest mobile market globally, offering significant growth opportunities for Chinese manufacturers who struggle to replicate such success in markets like the United States.
