A Bloomberg report suggests that India’s move is to drive Chinese companies out of the low-rate market and promote Indian companies. India is the second largest mobile market in the world where Chinese companies dominate.
Chinese companies may be banned for selling cheap phones in India
The preparation is big and the idea is also going on. Yes. If this idea takes shape, then Chinese companies selling mobiles cheaply all over India can get burnt. A report says that India is working on a plan under which Chinese companies will be allowed to enter India for less than Rs 12,000. mobile phone Selling may be prohibited. Let us tell you that according to the price band, this is the segment in which Chinese companies have left behind Indian companies. Phones of this rate are also made in India, but the features of Chinese companies lure customers. Rs 12,000 means 150 in dollars and if the phone of this rate is banned in India, then it will bomb the domestic market and domestic companies and the condition of Chinese brands like Xiaomi will be battered.
A Bloomberg report suggests that India’s move is to drive Chinese companies out of the low-rate market and promote Indian companies. India is the second largest mobile market in the world, where Chinese companies have consistently made their mark. Has lured Indian customers by selling mobiles cheaply. According to the report, the biggest setback from India’s move will be to Xiaomi and its counterpart Chinese companies. Xiaomi is such a company that has made maximum penetration in India. The special thing is that due to Kovid in China, the mobile market of this company has been shrinking continuously, while in India it has continuously gained height.
Why ban only on mobiles cheaper than 12 thousand
Now also know why only phones cheaper than 12,000 will be targeted. In fact, mobile phones worth Rs 12,000 or $ 150 have taken the third place among the phones sold in India. It shows the figures of June 2022 Timari. The biggest thing is that about 80 percent of the Chinese companies in India occupy this range of mobile phones.
Now as soon as Xiaomi came to know about this news, its condition has started getting thinner. This is indicated by the stock market of Hong Kong. On Monday, the Hong Kong stock saw a major decline of Xiaomi. Its shares fell by 3.6% in a single day. Along with this, the shares of Xiaomi are going down in 35% fall in this year. It is not clear yet what, when and what action will the Modi government of India take against Chinese mobile companies, but the news coming from the sources has stirred up the Chinese companies.
Action on tax evasion of Chinese companies
You will also know how Chinese companies have been accused of evasion of tax and customs duty. Investigation is going on by Revenue Intelligence. The government itself replied in Parliament that action has been taken against three major Chinese companies Oppo, Xiaomi and Vivo and show cause notices have been issued for tax evasion. Even more Chinese companies are worried that the government can take more stringent steps in the future. You may remember that the Indian government had banned the famous Chinese company Huawei Technology and ZTE Corporation. These companies will also not be able to sell 5G equipment in India.
If there is a ban on Chinese companies, then the days of domestic companies like Lava and Micromax may return. Chinese companies have hit the market of these companies the most because in the segment of 10-12 thousand, both these companies of India make good phones, but lag behind in dazzling features.