Soon after entering India in 2014, Xiaomi mesmerized the market with its smartphone line-up. Within a short period of time, the company gained so much popularity that it became known as the number one smartphone brand in India. But since the corona pandemic, the picture has practically changed, people’s pessimistic attitude towards China and the Indian government’s crackdown on Chinese companies – have affected Xiaomi’s business like other brands for various reasons. Currently, although Xiaomi is one of the Chinese tech companies with the largest share in the Indian smartphone market, the company is facing a number of challenges. In that case, Xiaomi has written a direct letter to the Modi government regarding this issue.
Xiaomi wants to restore confidence with an open letter to the government
Currently, Xiaomi has the largest (around 18 percent) share of the smartphone market in India. In a letter dated February 6, the agency informed the Indian government that the Center’s hostile attitude towards Chinese companies and repeated investigations have left the suppliers worried. Therefore, the government should take such steps to restore the confidence of suppliers, said Xiaomi. Xiaomi India President Muralikrishnan B. In this context, he requested the government to address the concerns of component suppliers and see to it that they can set up manufacturing centers in India smoothly.
Incidentally, Chinese tech brand Xiaomi has been manufacturing its smartphones in India for a long time and most of their components are available only in India. But there are many parts which have to be imported from their home market i.e. China. In response to the government recently asking the company how to improve the country’s component manufacturing sector, Xiaomi sent this letter to the government. To put it simply, now they have given the open letter in view of the discussion with the Centre.
Indian government has taken strict measures against Chinese companies
Ever since the India-China border tensions in 2020, the central government has been cracking down on China-based apps and companies. In recent years, companies such as Vivo and Xiaomi have also been investigated and accused of tax evasion, visa violations and wrongly transferring money abroad. However, both the companies have denied the allegations.