HonorTech: Honor Returns To India, To Start Local Manufacturing In 2024
Chinese smartphone company Honor, which was once a dominant player in India’s smartphone market, is making a comeback after a hiatus of nearly two years.
However, this time it’s re-entering the Indian market under the name “HonorTech.” Honor had faced challenges due to sanctions imposed on its parent company Huawei by the US government in 2019.
Consequently, Google had to sever ties with Huawei, affecting its access to Android OS for its devices.
Now, HonorTech has teamed up with PSAV Global to relaunch the Honor smartphones in India. The collaboration aims to rapidly expand the brand’s operations in the country.
Madhav Sheth, the former CEO of Realme, leads the new venture. HonorTech plans to invest Rs 1,000 crore initially and work under a licensing agreement with the original Honor brand.
HonorTech’s main goal is to gain a 4-5% market share in terms of smartphone sales volume by the end of the following year, which would amount to around Rs 10,000 crore in revenue.
The company intends to establish itself as a fully Indian entity, with operations spanning from sales to manufacturing within India.
HonorTech also envisions manufacturing its smartphones locally, aligning with the government’s Make in India initiative.
The joint venture between HonorTech and PSAV Global aims to leverage the expertise of both companies. Honor will provide product knowledge, supply chain management assistance, technology transfers, and software support.
The initial plan is to test the Indian market with Honor products and gradually transition to local manufacturing by the end of the year.
HonorTech’s CEO, Madhav Sheth, highlights the company’s commitment to Indian ownership and management. This move is seen as a strategy to position the brand as distinctly Indian and potentially navigate any future uncertainties that may arise from geopolitical factors.
Chinese mobile apps have been already banned in India. Similarly, China’s smartphone companies like Xiaomi and Oppo are facing legal issues for not paying taxes & frauds with the Indian government. Thus, Honor may be trying to present itself as an Indian brand to avoid such cases.