Nokia handset maker HMD shifts manufacturing hub from China to India, eyeing global export growth

Finnish handset maker HMD Global, best known for producing Nokia brand phones, is shifting most of its manufacturing operations from China to India. According to a Moneycontrol report, the move is in line with its strategy to make India a global manufacturing hub and capitalize on changing geopolitical dynamics.

The company is urging its international suppliers to establish operations in India to support its growing export ambitions, Moneycontrol reported.

Confirming the shift, HMD CEO and Vice President India and Asia Pacific Ravi Kunwar said: “Much of what we used to do in China is moving to India, whether it’s our supply chain, procurement or logistics hubs. ” as quoted by Moneycontrol.

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The US-China trade war is a factor

HMD hopes to benefit if the United States under the Trump administration imposes tougher tariffs on China amid ongoing trade tensions. “Whatever we are exporting from China, the ratio is coming down in favor of exports from India,” Moneycontrol quoted Kunwar as saying.

infrastructure construction in india

The company has moved key operations, including its supply chain procurement team, to India. Yet China’s radical transformation is not yet imminent.

“It depends on India’s competitiveness as a destination,” Kunwar pointed out. Factors such as cost, quality and consistency are key to accelerating transformation, Moneycontrol cited.

HMD already exports Nokia feature phones and smartphones to West Asia and Africa through its Indian factory. The company also plans to focus more on exports to the United States and Europe due to changes in global security and supply chain priorities, the report said.

Supplier ecosystem expansion

HMD has urged component manufacturers to set up factories in India. Moneycontrol quoted Kunwar as saying, “Component manufacturers realize the potential of domestic consumption and export opportunities in India”.

Clear government policy is critical for this transformation and the Ministry of Electronics and Information Technology (MeitY) is developing a Value Plan for Electronic Component Manufacturing $40,000 crore, which is expected to be finalized soon.

Local partners and new products

HMD relies on partners like Dixon Technologies and Zet Town India to manufacture feature phones in India. The company recently launched its Fusion smartphone with connected gaming and photography accessories as part of its mid-range strategy for consumers. $10,000– $$15,000 price segment, the report adds.

Kunwar highlighted the company’s focus in India through three pillars: security devices, detox devices (feature phones) and device financing, the report said.

“Security is not just limited to the government or the military, it is also about consumers. This segment is growing rapidly,” Moneycontrol quoted him as saying.

HMD holds a license to manufacture and sell Nokia phones until 2026 and is refocusing on the Indian market to strengthen its global presence.