Lenovo expands Indian factory to meet booming local demand for PCs and smartmobes

Buys in to 'AtmaNirbhar Bharat' self-sufficiency drive and ups capacity for servers while it's at it


The PC market is on the rise in India, prompting Lenovo to expand its local manufacturing capabilities, the company announced this week.

"Lenovo is expanding in India across all business lines, including PC and smart devices, smartphones, infrastructure solutions, and especially in the newly established services & solutions group," said Lenovo in a canned statement.

The expansion includes a third manufacturing line in Puducherry, which will double the facility's capacity to two million PCs a year. It also includes a partnership with Wingtech Technology to manufacture tablets in Tirupati, Andhra Pradesh, and a partnership with Dixon Technologies to manufacture nearly all of Motorola's India-bound smartphones in Noida, Uttar Pradesh.

The three manufacturing plants employ around 1500 workers directly and indirectly. Lenovo has, however, emphasized the automation capabilities of the new production line.

Analyst firm International Data Corporation predicted the total India PC market to rise from ten million units in 2020 to 15 million by 2022.

India's smartphone market also experienced a stunning amount of growth in Q2 2021, rising 86 per cent year-on-year as consumers caught-up on their purchases following the second wave of COVID.

India wants to satisfy local demand for electronics with kit built within its borders under the nation's "AtmaNirbhar Bharat" self-sufficiency drive. Lenovo is therefore buying in to that policy.

Neighboring Pakistan's also enjoying the success of in-country tech manufacturing, yesterday announcing that locally-built smartphones outnumbered imported kit in the first half of 2021.

While that's a good result, Pakistan's Telecommunications Authority also pointed out that just 4.7 million of the total were 4G phones. ®

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