PC brands & ODMs have mixed feeling about investing in India

India is a hotspot for PC brands these days as the country is one of the world’s largest markets growing rapidly. After the pandemic, the need for PCs, notebooks, tablets has increased significantly, and looked at the current situation; the demand is not looking to fade away anytime soon.

So, companies who export products from their manufacturing hubs in China, Vietnam, and other countries have to pay a hefty tax to the government. However, brands that have locally started manufacturing products offer cheaper products without sacrificing quality.

The Indian government is willing to support brands to start manufacturing locally in India by introducing the PLI scheme. However, PC brand vendors are most keen about shifting production to India as the demand is growing and looking forward to a China alternative.

However, as DigiTimes pointed out, India’s policies, labor environment, and government efficiency still need improvements. So, it is a less attractive spot as an investment target than China, Vietnam, and Taiwan, but a large market is a lucrative option for most brands out there.

Asustek Computer or better known as ASUS is keen on manufacturing PCs in India and is currently in talks with its manufacturing partners. Another Taiwanese giant, Acer, has also been talking about having its products made in India for a while.

Acer is said to have obtained procurement orders from India in both the first and second quarters, while its clients have also expanded from the local education segment to enterprises. The US has some serious issues with IT products made in China, and we know the country produces a huge quantity of electronic goods.

Almost all OEM and PC brands have their manufacturing hub in China, and so they are looking for alternative countries in South Asia, and India is the biggest name that brands are looking forward to. Obviously, nothing is made in a day, and the situation is worse due to pandemic, we have wait and see how production kicks off in India.

So, the Indian government is also looking to attract makers to shift their production from China to India via its PLI Scheme that promises up to US$1 billion subsidies. So far, none of the ODMs has considered making new investments in India, but with time, it will be interesting to see how brands opportunities India’s growth potential.