Chinese smartphone giant Honor is reportedly preparing for a comeback in the Indian market through a strategic partnership with a local company. According to reports, Honor has entered into a licensing agreement with Gurugram-based HonorTech, a joint venture involving former Realme India executive Madhav Sheth and Honor India distributor PSAV Global. This collaboration aims to manufacture smartphones in India.
Investment Plans and Technological Transfer
HonorTech plans to invest INR 1,000 crore to support Honor’s return to the Indian market. A substantial part of this investment will focus on establishing operational infrastructure, forming software and hardware teams, and creating service centers nationwide. The partnership includes sharing Honor’s worldwide technological and hardware knowledge with HonorTech.
Honor Smartphone Models and Localization Plans
Under the agreement, HonorTech and Honor intend to launch three mid-range smartphone models under the Honor brand by September this year. These smartphones are expected to be priced between $100 and $1,000, encompassing foldable devices. Initial imports are planned for these models, but the long-term objective is to manufacture all Honor-branded smartphones in India through a production linked incentive (PLI)-approved domestic contract manufacturer by 2024.
Honor Revenue Projections and Job Creation
HonorTech is optimistic about its prospects, aiming to achieve a revenue of INR 10,000 crore by December 2024. The partnership also targets a 5% market share in the smartphone industry by the end of 2022. Anticipate the collaboration to create approximately 4,000 jobs in India across diverse sectors. Including operations, retail, and research and development by the end of the upcoming calendar year.
Reentry Amid Geopolitical Shifts and Regulatory Considerations
Honor has returned to the Indian market after almost a year of suspending its smartphone operations. The suspension happened due to geopolitical tensions between India and China. Honor’s collaboration with HonorTech aims to address Indian authorities’ past concerns. These concerns involved Chinese smartphone makers needing local equity partners to operate in India. Honor’s reentry intensifies competition among Indian smartphone brands. Established players like Samsung, Xiaomi, Oppo, Vivo, and Realme now face competition from Honor. India’s smartphone landscape experiences a notable shift with Honor’s comeback, especially as other Chinese firms encounter regulatory scrutiny.
