For Price Competitiveness
LG Electronics plans to release new low-end smartphone models called the Make In India and True 4G, which are manufactured in India, at Ashok Hotel in New Delhi on Apr. 14. As the company will release the LG G5, a strategic model for the Indian market, next month, it will target the market ranging from premium models to low-end models in earnest.
LG Electronics will set up its first manufacturing line in India in order to target the Indian smartphone market, which is expected to be the largest market in the world overtaking China. By the end of this month, the company plans to start manufacturing low-end smartphone models, aiming the Indian market in earnest.
According to industry sources on Apr. 7, LG Electronics has signed an agreement with GDN Enterprises, a smartphone maker headquartered in Noida, Uttar Pradesh State of India, for using a plant and manufacturing smartphones. The move is aimed to locally produce India-specific smartphone models in this plant.
The company is not constructing a large production base, but it will lease a local plant and import production facilities from South Korea to domestically manufacture smartphones. This is the first time for the company to produce smartphones in India.
In particular, India currently imposes a 13.5 tariff on fully assembled smartphone products. When low-end models produced in Korea are exported to India, the price competitiveness decreases owing to tariffs. This is why the company has no choice but to locally produce products in a bid to win over the low-end smartphone market.
LG Electronics plans to release new low-end smartphone models called the “Make In India, True 4G,” which are manufactured in India, at Ashok Hotel in New Delhi on Apr. 14. As the company will release the LG G5, a strategic model for the Indian market, next month, it will target the market ranging from premium models to low-end models in earnest.
Meanwhile, Samsung Electronics has the largest share in the Indian market and local producers are also in a heated competition.