Lenovo follows Xiaomi in setting up India smartphone factory
Lenovo Group Ltd said on Tuesday it was establishing a smartphone assembly unit in India, becoming the biggest Chinese company so far to respond to Prime Minister Narendra Modi’s campaign to turn the country into a manufacturing powerhouse.
Partnering with contract manufacturer Flex, previously known as Flextronics, Lenovo said in a statement it is working on a new assembly line in the southern Indian city of Chennai. Using imported parts, it will have an annual production capacity of 6 million smartphones and employ 1,500 people. Production of its MotoE range of smartphones has already begun, it added.Keen to grab a larger slice of the world’s third-largest smartphone market as well as counter accelerating wage inflation at home, China’s phone manufacturers have been quick to seize opportunities made possible by Modi’s “Make in India” campaign. China’s Xiaomi this month said it was joining forces with Taiwan-based tech giant Foxconn to start assembling phones in India.