Nokia Phone Maker HMD Moving Manufacturing Operations From China To India, Says Report

The firm has started holding discussions with its electronic component suppliers across the world and is trying to encourage them to establish factories in India to support the company’s goals

Notably, HMD exports Nokia feature phones and smartphones to West Asia and Africa from India.

Source : HMD

Nokia phone maker, HMD, is shifting major part of its manufacturing operations from China to India. The Finnish handset maker is making the move as part of its broader strategy to make India its global manufacturing hub.

The firm has started holding discussions with its electronic component suppliers across the world and is trying to encourage them to establish factories in India to support the company’s goals, reported Moneycontrol. 

The firm remains hopefully that it will be able to gain if the new US President Donald Trump imposes stricter tariffs on China. Speaking with the media organisation, Ravi Kunwar, CEO and VP for India and Asia Pacific, HMD, said “A bulk of what we used to do out of China is being moved to India, whether it is our supply chain, sourcing or logistics hub. Slowly and gradually, we have been strengthening our India leg, helping us build onto our robust export strategy for India. Whatever we have been exporting out of China, that percentage is going down and increasing in favour of exporting out of India.”

The executive said that the company has moved significant portions of its manufacturing infrastructure, such as the supply chain sourcing team. However, he added, that it will take some time to shift the company’s manufacturing operations from China completely.

“It also depends on how competitive India becomes as a destination. For exports, we need cost, quality and consistency in delivery. As long as India continues to improve on these fronts, a higher percentage of China manufacturing will shift here,” he noted.

Notably, HMD exports Nokia feature phones and smartphones to West Asia and Africa from India. The executive said that with the shifting geopolitical scenario, the company will now shift its focus to exports to the US and Europe. Regarding its parts suppliers, Kunwar said, “The component makers realise the potential for domestic consumption in India and export opportunity… A big shift will happen once we have a clear policy from the government. We have given our input on what can help drive the transformation of local sourcing and component ecosystem.”