India to reportedly ban Chinese smartphones selling under Rs 12,000

India seeks to restrain China-based smartphone brands from selling devices for less than $150 (Rs 12,000) to give a much-needed boost to homegrown brands like Lava and Micromax over Vivo, Xiaomi, OPPO, and others, as per several reports.

According to an International Data Corporation report, the smartphone market in India increased by 3% to 35 million units in the April-June 2022 quarter, with Chinese smartphone maker Xiaomi leading the way.

According to IDC’s Worldwide Quarterly Mobile Phone Tracker report, Chinese brands now occupy the top three positions in the Indian smartphone market, with Realme and Vivo moving up the ladder, while Samsung slipped to the fourth spot in terms of volumes. 

ALSO READ

HTC launches its first metaverse phone with crypto, NFT functionality

The goal of the ban is likely to push Chinese giants out of the lower segment of the world’s second-largest mobile market, according to the report. Smartphones priced at Rs 12,000 or below contributed to a third of India’s sales volume for the quarter through June 2022. However, Chinese brands account for 75 to 80% of those sales. Meanwhile, Indian companies account for less than 1%.

Xiaomi shipped 7.1 million smartphone units, thereby leading the Indian smartphone segment with a 20.4% share despite a 28.2% dip in volumes on a year-on-year basis. Realme's shipments increased by 23.7% to 6.1 million units, helping it gain a 17.5% market share.

As per Counterpoint Research, companies such as Realme and Xiaomi have captured about 50% of the Indian market share in the Rs 12,000 and below segment. This has led to mounting concern about high-volume brands destroying local manufacturers.

New Delhi has subjected Chinese brands operating in the country to close scrutiny of their finances, which has led to tax demands and money laundering allegations.

Amid security and privacy concerns, India banned more than 300 apps, such as TikTok, SheIn, and WeChat, over the last two years.