News Lenovo plans to achieve 100% PC manufacturing in India in 3 years

Kaching999

Kaching999

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Lenovo India Managing Director Shailendra Katiyal said that of the total PC sales in India, the company manufactured 30 per cent locally, and will hit 50 per cent next year, and eventually 100 per cent in three years-time.

So no Lenovo is not going to manufacture all their products in India but is planning on manufacturing 100% of the PCs (most probably including laptops) sold in India in India itself.

Will this help lower the costs for the consumers here? What do you think?

Source: Business Standard
 
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blr_p said:
It should make prices more competitive with how much they are sold for abroad.

Just like what happened with phones

This is a welcome development and long overdue. Maybe more vendors will join in the future
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Well the reason I am a bit skeptical is that both Apple and Google have started manufacturing in India but that hasn't had much of an effect on the pricing and it is still not equal to what their products go for abroad. Especially in the case of Apple.
 
Kaching999 said:
Well the reason I am a bit skeptical is that both Apple and Google have started manufacturing in India but that hasn't had much of an effect on the pricing and it is still not equal to what their products go for abroad. Especially in the case of Apple.
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How about Samsung or even LG that have been in India much longer?

Aren't their prices competive

Question is what have Apple & Google started manufacturing. Which phones does Apple make in India? Not any top end ones unlike Samsung & LG who have been building their flagships here for a while now.

LG doesn't make phones these days but both G4 & V20 were made here.
 
blr_p said:
How about Samsung or even LG that have been in India much longer?

Aren't their prices competive

Question is what have Apple & Google started manufacturing. Which phones does Apple make in India? Not any top end ones unlike Samsung & LG who have been building their flagships here for a while now.

LG doesn't make phones these days but both G4 & V20 were made here.
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Well the difference in pricing between samsung's flagship sold here and abroad is about 17k while the same difference for apple is 40k, both of them manufacturer both the flagships here in India itself, Samsung at it's Noida facility and Apple through Foxconn.

Samsung and LG have competitive because they have been manufacturing here for a longer time. Also I suspect it has something to do with them shipping most of their manufacturing equipment from South Korea instead of China and because of Foxconn and hence Apple's reliance on China for it's equipment, they face much more trouble in dealing with the government.
 
Kaching999 said:
Well the reason I am a bit skeptical is that both Apple and Google have started manufacturing in India but that hasn't had much of an effect on the pricing and it is still not equal to what their products go for abroad. Especially in the case of Apple.
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Are Indian prices really that much higher? When you convert from USD prices it comes out to be like 1USD=100Rs. The actual exchange rate is 87. If you add sales taxes that are not included in USD prices, Indian prices seem to be OK already. That's why they don't reduce the prices after manufacturing in India, because it probably costs the same. The push to manufacture in India is only for diversification reasons, not cost.
 
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roadrash99 said:
Are Indian prices really that much higher? When you convert from USD prices it comes out to be like 1USD=100Rs. The actual exchange rate is 87. If you add sales taxes that are not included in USD prices, Indian prices seem to be OK already. That's why they don't reduce the prices after manufacturing in India, because it probably costs the same. The push to manufacture in India is only for diversification reasons, not cost.
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In case of Lenovo that does seem to add up. But I also wonder if they would bring their entire product stack here like they have in US, most of the time when I go and look at the catalogue offered in both the countries, US has way more products than we get here.
 
What do they mean by manufacturing? What components are actually going to be manufactured in India? Lenovo doesn't make the processors, or memory modules. The same is the case with the motherboards.

I am not being sarcastic. I am genuinely wondering as to what the word means in this context. Does it mean assembled?
 
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soulweaver said:
What do they mean by manufacturing?
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Yeah when I see the word manufacturing in context of India - alarm bells used to go off not so long ago. Now I have got used to the fact that for media, importing from abroad and assembling is always equated to manufacturing, made in India, etc. and we will get stuff at a reduced cost yada yada yada ..
 
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This might give some answers:

https://www.chinadaily.com.cn/bizchina/2012-07/23/content_15607801.htm

Lenovo does still design it's own PCBs and cooling solutions in house. But yes they won't be manufacturing here completely in the purest sense but seeing that assembly is also a crucial part of manufacturing especially in consumer electronics they can get away with it.

Also by that definition, you won't be able to find a single company which sells consumer products that we could say manufactures a product.
 
blr_p said:
unlike Samsung & LG who have been building their flagships here for a while now.
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Dunno about LG, but Samsung is properly scamming make in India label. Just bought a Samsung flagship phone. The box had 'made in India' written on it multiple times. But the only thing in the box which was made in India was the USB-C cable. Same story with Samsung watch and their buds. Written 'made in India' several times on the box. And, they have nothing in the box, which was made in India. Actual products clearly have made in Vietnam labels.
 
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