Xiaomi is creating its second assembly plant in collaboration with the production giant Foxconn, in India, precisely in Sri City, Andhra Pradesh. The new plant will be able to aspire to a production capacity of 2 million units per quarter and will double the current revenues of the Chinese company. The factory spans 65000 square kilometers and is already in operation, although it will take some time before it is able to maximize production capacity.
The new plant will lead Xiaomi to enter the list of the largest phone manufacturers in India, fourth behind Samsung, Micromax and Intex. The company has always emphasized the importance of the Indian market for its success and demonstrated it with the speed with which the new factory was built, following the announcement of its intentions last year. Statistics show that Xiaomi sells between 1 and 1,5 million phones per quarter (75% of which are produced locally) while Samsung and Intex churn out 3 and 2 million phones per month respectively.
Xiaomi is in third place with regard to offline sales made in the last quarter, with a share of 8,1%, against 28,5% of Samsung and 11,9% of Micromax. This prominent position was achieved thanks to the decision to adopt a retail system, which made it possible to minimize the costs of distributors and intermediaries. The other key to Xiaomi's success in India can be attributed to the success of Redmi Note 3, which sold over 1,5 million units following the launch a few months ago.
source | Gizmochina.com
