Lenovo-Motorola announced its plans to establish India as its export hub. Starting end of April this year, the company will start exporting smartphones to regions such as Latin America – one of Motorola’s major markets – as well as the Asia Pacific. Lenovo will focus primarily on smartphones priced between $85 to $300 and Motorola will cater to the $145 to $300 segment of smartphones.
Prashanth Mani, head of Lenovo’s mobile business in India and Motorola Mobility’s managing director said that the group is currently capable of producing 12 million units per year, and can scale up in terms of volume on the basis of demand. Apart from assembling smartphones, Lenovo-Motorola will also assemble Printed Circuit Boards in India as well as make batteries and chargers locally in partnership with San Francisco-based Flex’s subsidiary in India, Flex Limited – that also manufacturers smartphones for Xiaomi.
Among the various initiatives by the Indian government that incentivize local production and export of goods, the Export Promotion Capital Goods Scheme allows manufacturers of electronic products to import raw material and goods essential for production at zero import duty.
