Google is making big plans to start manufacturing its Pixel smartphones in India very soon. This change shows that the tech giant wants to make its phones in India instead of China and take advantage of the growing market for smartphones in India.
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They are aiming to make and sell over 10 million Pixel phones this year, just like they did last year, according to a report by Nikkei Asia.
The report reveals that Google plans to start making the high-end Pixel 8 Pro first in the southern part of India. Then, in the April-June quarter, they will start making the Pixel 8 in the northern part of the country. India has become a big place for making phones, with companies like Apple, Samsung, Oppo, and Xiaomi already making phones there. Notably, Apple already has a few plants in the Southern part of India.
Previously, most of Google’s Pixel phones were made in China. But now they want to make them in India too. This is part of a bigger plan to make sure they don’t rely too much on China for making phones. It’s called the ‘China+2’ strategy, where companies try to have more than one country for making their products.
“Google is not the only tech company that started to look for a ‘China+2’ strategy. That means diversifying away from China into another place is not enough, but suppliers should have multiple non-China options for better supply chain resilience,” one of the sources told the publication.
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The Indian smartphone market witnessed a 1 per cent growth in 2023, reaching 146 million units, amidst a global slowdown. This growth contrasts with a decline in the global smartphone market, particularly in China. Google’s ambition to ship another 10 million units in 2024 underscores its commitment to sustaining its Pixel phone business amid growing competition, particularly from Huawei’s HarmonyOS and Samsung’s attempts to alter its mobile phone default search engine.
Google’s manufacturing plans in India coincide with the Indian government’s efforts to bolster the country’s tech manufacturing sector by offering incentives and considering tighter import restrictions to attract companies to establish local supply chains. Other tech giants, including Apple and Taiwanese PC makers Acer and Asustek Computer, are also ramping up production in India.
Analysts suggest that Google’s move into Indian manufacturing is not only driven by the U.S.-China trade tensions but also by India’s investment incentives, import tariff policies, and its vast domestic market.
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With Samsung already having manufacturing hubs in Vietnam and India, Google’s expansion into India further solidifies the country’s position as a key player in global tech manufacturing.
