Motorola Eyes India’s PLI Scheme to Strengthen Local Manufacturing, Expand Device Portfolio:

Motorola is keenly looking into India’s ₹22,919-crore production-linked incentives (PLI) scheme for electronics components with an aim to increase its domestic manufacturing capacity. Lenovo’s subsidiary seeks to position India as a major hub within its integrated global supply chain network to cater to the rising need for smartphones and other devices across the world.

TM Narasimhan, Head of Motorola India stated that the company’s global and procurement strategy is considering integrating the Indian PLI scheme into its existing plans with the local contract manufacturer. He highlighted that the main focus is to increase the participation of Indian operations in the global initiatives of Motorola in terms of strategy, volume, and revenue.

PLI Scheme and Realigned Tariffs Work Together to Build New Prospects
In conjunction with the recent changes to U.S. tariffs on consumer electronics, India has solidified its appeal as a manufacturing hub. While China sits with a 20% tariff on electronics, India, and Vietnam enjoy duty free access on smartphones, laptops, and tablets to the U.S., making them alluring for international players like Motorola.

India Among Top 3 Global Markets for Motorola

Motorola now ranks among the top three global markets alongside India which puts India as the second of only four countries to manufacturer Motorola devices. The other bases of manufacturing for the company includes Argentina, Brazil, and China. With increased adoption of smartphones in the Motorola markets, the company expects favorable changes for policies, presenting them with a lot of growth potential in the long-term.

Expanding Into Laptops and Tablets

Alongside their favorable performance in India’s smart phone segment, Motorola is planning on stepping into the consumer laptop and tablet market as well. They have recently introduced the Moto Book 60 alongside the tablet which is the Moto Pad 60 Pro specifically designed for Indian customers.

Narasimhan said Motorola’s growth from 1.5 percent to 8 percent share in the smartphone market makes them contfident about introducing other products as well. According to IDC, Motorola was the second fastest growing smartphone brand in the quarter of October – December 2024, only surpassed by Nothing.

Internal Strategies for New Product Line Production

Motorola intends to switch to domestic production after hitting pre-defined volume targets. Currently, the production of tablets and laptops is not local due to their scale. However, Motorola as part of the Lenovo ecosystem—the world’s largest laptop manufacturer—will be able to quickly respond to demand increases.

Forecast Outcome: By 2026 3rd Largest Smartphone Seller in India

Motorola is hoping to attain a market position as the third-largest smartphone seller in India by 2026 alongside a clear strategic roadmap bolstering the company’s growth. Narasimhan emphasized that this development forms part of the company’s larger international targets, which clearly indicates increased focus on capturing market share.