In a strategic move to bolster its presence in one of the world’s largest smartphone markets, Honor has announced plans to commence manufacturing smartphones in India before the upcoming Diwali festival. Earlier, manufacturing of Honor Smartphones in India was expected to start by the end of 2023.
“Honor aims to begin local manufacturing in India by the end of Q3 2024. We plan to launch the Made In India smartphone by Diwali. As of now, the brand’s smartphones are being imported from outside India, which has impacted the brand’s ability to keep the prices of its smartphones aggressive and competitive,” said Madhav Sheth, CEO of HTech to The Mobile Indian.
”Honor possesses a number of patented technologies that are involved in the production of its smartphones. As an example, the Honor X9b is produced via 70% automated processes in China. It will take some time for Honor to import those technologies in India and begin manufacturing locally”, said Sheth.
“India’s Electronics Manufacturing Services (EMS) currently lack the necessary technologies to produce Honor’s smartphones. However, we will soon get these technologies to India to support manufacturing partners, enabling us to expedite the production process,” he added.
Sheth also highlights the company’s intent to align with the Indian government’s ‘Make in India’ initiative. By setting up manufacturing units within the country, Honor aims to not only meet the rising consumer demand but also contribute to the local economy by creating job opportunities and fostering technological advancements. He also said as compared to other Chinese Smartphone brands operating in India, Honor’s brand licensee HTech is 100% owned by Indians.
Strategic Benefits and Market Implications
The decision to manufacture locally is poised to offer multiple strategic benefits for Honor. Firstly, it will significantly reduce the lead time for bringing new models to market, allowing Honor to respond swiftly to consumer preferences and market trends. Secondly, local manufacturing will enable Honor to better manage production costs, potentially translating to more competitive pricing for its devices in the Indian market.
Furthermore, manufacturing within India will help Honor mitigate the impact of global supply chain disruptions, ensuring more reliable and consistent product availability. This move is expected to enhance customer satisfaction and loyalty, as consumers will benefit from quicker access to the latest models and features.
Alignment with Government Initiatives
Honor’s decision is in line with the Indian government’s efforts to promote domestic manufacturing through the ‘Make in India’ initiative. By setting up production facilities locally, Honor will be contributing to the country’s economic growth, supporting local suppliers, and fostering innovation within the tech industry.
Sheth emphasized the importance of this initiative, stating, “Our commitment to the Indian market goes beyond just sales. By manufacturing locally, we aim to integrate ourselves deeper into the fabric of the Indian economy and support the nation’s vision of becoming a global manufacturing hub.”
Impacts on Upcoming Launches
The announcement comes at a critical time as Honor prepares to launch its new Honor 200 series and Honor Magic 6 Pro in India. Sheth said, “The Honor 200 series will be imported into India, but phones launching before Diwali will be made-in-India phones.”
Local production of Honor Phones is expected to streamline the launch process, ensuring ample stock availability and potentially faster delivery times for consumers. This move is likely to be a significant advantage during the festive season, a peak period for smartphone sales in India.
It may be recalled that brands like Samsung, Apple, OPPO, Vivo, and even newer entrants like Nothing are already manufacturing their smartphones in India, which helps them better adapt to Indian consumers’ needs.