Another generation of OEM giants announced the withdrawal of investment, and Pegatron went to India to build a factory
The excellent performance of China's manufacturing industry is obvious to all, and India also wants to develop the manufacturing industry, and even wants to become another world manufacturing center after China. Therefore, India has proposed a series of preferential policies to attract foreign manufacturers to invest in India, and Foxconn has invested more than 30 billion yuan to build factories in India.
Unexpectedly, some time ago, it was reported that another foundry giant, Pegatron, also decided to leave Chinese mainland and invest in India to build a factory. This news has attracted the attention of many foreign countries, and even bluntly said: Chinese companies or"Overboard"。
In fact, the news of Foxconn's investment in India and its accelerated withdrawal from the Indian continent has been widely spread, with Foxconn investing 11 billion yuan and 12 billion yuan in November and December respectively to further accelerate plans to build factories in India and increase the number of employees in India to about 70,000.
In addition, in early January, Foxconn also announced that it would invest 37.5 million yuan to establish a joint venture with the Indian company HLG to seal and test the tablet, and some industry experts said: Foxconn wants to speed up the withdrawal.
There are many reasons why Foxconn chose to invest in India, such as the large number of workers in India and the lower cost, which is good news for labor-intensive companies like Foxconn. On the other hand, the vast majority of Foxconn's orders come from Apple, which not only began to transfer OEM production capacity to India, preparing to put nearly half of the iPhone orders into the Indian market, but also required Pegatron, Foxconn and other foundry companies to build factories in India.
In addition, in order to attract foreign manufacturers to build factories in India, India has also begun to offer some preferential measures, such as India's import tariff on SIM card slots and other mobile phones from 15% to 10%, attracting many foreign companies.
Pegatron chose to invest in India to build a factory, which is not very strange, after all, a large number of foundry companies have poured into India, even Lixin, BYD, etc. are also interested in investing in India, it can be said that if you do not build a factory in India, it is undoubtedly giving up the Indian market cake.
In fact, whether it is Foxconn or Pegatron, it is not so secure to invest in building factories in India, especially Pegatron. For Pegatron, although the prospects for the development of the Indian market look good, in fact, it is not difficult to find a lot of problems.
It's not just the low quality of the workforce and the lack of relevant technical personnel, but the business environment in India is actually even worse. Previously, Wistron, which is also an Apple OEM, invested in building a factory in India for several years, and even was put into production, and finally came from India"Soaring Barrel"。
In addition, Foxconn is not only accelerating the construction of factories in India, but the local Indian company of the Tata Group has also become one of the OEM manufacturers of Apple's iPhone. It is not known how many orders Pegatron will receive in the Indian market, which is why Pegatron has chosen to invest in India, but it still has a number of foundries on the Indian continent.
In addition to mobile phone foundries, some mobile phone manufacturers have also chosen to build factories in India. Xiaomi, for example, has built a factory in India and has been developing in the Indian market for many years. According to public data, Xiaomi has been the most loved and best-selling mobile phone brand among consumers in the Indian market for many years.
For those companies that want to transfer production capacity to India, we don't need to worry too much, after all, with the development of manufacturing, it is inevitable that labor-intensive industries will go abroad. For Chinese companies that intend to build factories in India, it is actually a normal situation, after all, the share of the Indian market is still not small, and although Chinese companies intend to build factories in India, although they face risks, it is also a fundamental step towards the international market.
However, as mentioned earlier, the Indian market looks good, but in fact there are many problems, and if Chinese companies want to enter the Indian market to invest and make money, it is better to be mentally prepared.
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