Xiaomi, a renowned industry leader in terms of smartphone sales in India, along with two other prominent consumer electronics manufacturers, Lava, and Lenovo-Motorola, are reportedly shutting down their respective smartphone factories across several parts of India after the government announced lockdowns to control the spread of the coronavirus in the country.
According to reliable reports, Lenovo-Motorola would also be shutting down its PC factories along with its smartphone production facilities in the country.
As per a Xiaomi spokesperson, the four factories of Xiaomi in Noida and Tamil Nadu would halt production starting March 24th, 2020. Additionally, each facility including warehouses, manufacturing plants, service centers, corporate offices, and Mi Home would adhere to the announced lockdown orders.
The Chinese smartphone maker has a total of eight plants for power banks, smartphones, and smart TVs, which are operated by its contract-based manufacturer partners. Meanwhile, it is yet not confirmed how long Lenovo-Motorola and Xiaomi facilities would remain closed.
Neil Shah, research director, Counterpoint Technology Market Research stated that the lockdown could cause a 40% drop in the sale of smartphones in April. Furthermore, if Samsung, being the major exporter of phones and parts, continued its shutdown for nearly two weeks or more, exports might fail by 50%.
Lava International, a local handset company has shut its manufacturing facility in Noida, Uttar Pradesh. As per company data, the UP plant has a production capacity of over 3 million units/month, out of which 2 million units are exported annually.
Additionally, Oppo, Vivo, and Samsung have also suspended the production at their plants that are situated in Noida and Greater Noida.
As per a Samsung spokesperson, in order to safeguard its employees as well as their families against coronavirus, and in accordance to the directives issued by the government, the company has planned to presently suspend its manufacturing operations. Moreover, the company has also asked its employees working in the marketing, sales and R&D offices throughout India to work from home.