India's mobile phone production capacity: Unutilised potential amidst declining demand
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Utilisation rates are higher for manufacturers which are exporting in large numbers and are part of the PLI scheme, while smaller players producing mainly for the domestic market are repurposing a major proportion of their assembly lines to make products like telecom equipment and wearables, they said. Underutilisation has been high since 2022, when the post-Covid pent-up demand started disappearing, they said.
According to Counterpoint Research, India’s annual mobile phone production capacity was upwards of 500 million units at the end of 2024. This included capacity to produce smartphones, feature phones and tablets. The Electronic Industries Association of India (ELCINA) has a more conservative estimate of 400-420 million units.
But only about 250 million mobile phones are currently produced a year in India, Counterpoint and the industry association told ET.
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