Chinese smartphone maker LeEco has setup its first manufacturing facility in Noida with an investment of $5 million. The company claims that the 200,000 sq. feet facility will be capable of producing close to 60,000 phones per month. LeEco plans to ramp up the production to approximately 200,000 devices per month by the end of 2016.
The manufacturing plant has been setup in partnership with Taiwan-based electronics manufacturer Compal Electronics and an additional amount of $2 million has been allotted for automation processes for the new manufacturing plant.
This development comes just 8 months after LeEco began operations in India. It currently claims to have sold more than 1 million smartphones in India since its entry. IDC pointed out that the LeEco Le 1s smartphone model topped online sales in February among budget models between the range of Rs 10,000 – Rs 15,000. LeEco, in its statement, said that “India is top priority in LeEco’s global expansion roadmap.” The company currently has an R&D team in India and plans to add over 1,000 engineers to the team by next year for designing and developing products that that will be sold both locally and internationally.
Expansion in India
LeEco had entered India this year with two smartphones launches, while providing live streaming of video content. In April, the company said that it would invest $10 million to develop cloud infrastructure for delivering content across mobile devices and smart TVs. To supplement this expansion, in January, the company partnered with Eros Now for showcasing ErosNow’s repository of Bollywood films, music and; it also inked a deal with Yupp TV for streaming Yupp TV’s Live TV content on its platform.
In April, LeEco had filed an application with the Foreign Investment Promotion Board (FIPB), seeking approval for opening single brand retail shops and an e-commerce portal in India. However, with the exemption of local sourcing rules by the Indian government last month, branded stores of LeEco might pop-up in India sooner.
Last month, LeEco acquired US based consumer electronics manufacturer VIZIO for $2 billion.
Chinese manufacturers in India
Chinese manufacturers like LeEco, Gionee, Xioami, etc. have captured the Indian smartphone market better in the last couple of months, as compared to domestic brands like Micromax, and Intex. Market research firm IDC said in a recent report that smartphone shipments from China based grew 28% q-o-q; shipments from these brands also grew 75% in CY Q2 2016. On the other hand, Indian and global vendor shipments declined year-over-year during Q2 2016. More here.
Last month, Gionee said it will soon setup manufacturing plants in India and said it will invest to expand its distribution in offline mode as well. The company had earlier tied up with Foxconn and Dixon to manufacture its phones in India in September last year.