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Chinese Smartphone Maker Xiaomi has reportedly entered into a pact with consumer electronics maker Dixon Tech to kick start 55K TV sets production locally every month.
While, earlier we had reported about Xiaomi planning to manufacture Mi TV sets in India to amp up Diwali sales, another collaboration with Dixon is a robust move by the company to expand its foothold in the country.
Dixon Partnership will likely ensure an August launch “Make in India” Mi TVs. The large scale productions is expected to begin next month at Dixon’s Tirupati plant where 32-inch and 43-inch models will be manufactured.
Within the deal, the local production will follow an “open cell” route for which the company will be importing television panels in an open cell state that would involve assembling much before final launch in the market.
The local manufacturing is expected to boost Mi TV model sales by helping in reduction of prices by 20 percent. CEO Lei Jun, in a roundtable interview in Bengaluru in April had said that they need to put 20 percent import tax long with insurance and logistics fees. By manufacturing in India, they can further bring down the price.
Interestingly, the company is also in talks with Taiwanese contract manufacturer, Foxconn to intimidate online sales in the upcoming festive season during Diwali. Foxconn is likely to manufacture the 55-inch and above models at its Chennai facility.
Meanwhile, analysts have reported an upsurge in adoption of TV’s on the consumer front. As per the survey, about two thirds of the the 183 Mn households will eventually need to replace their TV sets in next few years.
Xiaomi’s target is to become the largest online television brand before it expands into multi-brand stores and now with the Dixon partnership under its roof, the chinese phonemaker is all set to strengthen its TV production capabilities in the country.