Lenovo India On Track To Double Production In FY25

SUMMARY

Lenovo India’s managing director Shailendra Katyal said that the company wants to further increase local production by 40% YoY in FY26

Lenovo has commenced preparations for manufacturing “almost all its personal computer models” in India and has achieved 100% local production of its Motorola smartphones

Lenovo started building AI servers at its Puducherry plant, going beyond the manufacturing of smartphones, laptops and PCs

In a major impetus for the Centre’s “Make In India” initiative, Chinese consumer electronics major Lenovo is on track to double the production of its devices in India in the ongoing fiscal year. 

Speaking with Economic Times, Lenovo India’s managing director Shailendra Katyal said that the company is well poised to manufacture 12 Mn laptops and smartphones in the country in the financial year 2024-25 (FY25) compared to 6.4 Mn in FY24. 

“This will help us to taper down imports progressively. We are also developing the component ecosystem in India,” Katyal said. 

He added that Lenovo will continue to scale up local production every year and the company wants to further increase local production by 40% year-on-year (YoY) by the end of FY26. 

Katyal also said that the company has commenced preparations for manufacturing “almost all its personal computer models” in India. The China and US-based company also claims to have achieved 100% production of its Motorola smartphones in India. 

“We have grown by 77% in April-September of this fiscal. For Motorola, we had doubled business both by value and volume in FY24 and again this fiscal in the first half. In smartphones, growth is led by products priced above INR 20,000 and as a result, our value growth is higher than volume growth,” added Katyal.

Lenovo has been aggressively expanding its manufacturing operations in India on the back of Centre’s production-linked incentives scheme (PLI) for IT hardware manufacturers and other sops. It claims to have produced 5 Mn units in India in FY23. 

Not just smartphones and PCs, the company also started building artificial intelligence (AI) servers at its Puducherry plant last year. 

It is pertinent to note that as many as 27 companies including Dell, HP India and Lenovo, have applied for the PLI scheme to manufacture hardware components in the country. 

As per an EY research, the homegrown electronics manufacturing services sector is projected to become a $80 Bn market opportunity by 2027. 

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}