Motorola has been steadily increasing its manufacturing footprint in Indialeveraging local production incentives. The company, which currently produces 13 million smartphones annuallyplans to increase this to 23-30 million units in the next fiscal year. A large portion of this increased output will be exported, with the U.S. as a primary destinationaccording to the India Cellular and Electronics Association (ICEA).
Dixon Technologiesone of Motorola’s key manufacturing partners, has confirmed growing orders from the brand. “We have been consistently producing over 1 million units per monthand the order book looks strong for the coming months,” said Atul Lall, Managing Director, Dixon Technologies.
The U.S. government’s increased tariffs on Chinese importsincluding mobile phones, has prompted smartphone brands to explore alternative manufacturing locations. Samsung has already expanded its production in Indiaand Motorola is following suit to mitigate the impact of rising costs in China.
Currently, Motorola exports 20-25% of its production (around 2.2 million units) to North America. This is expected to more than double to 12-18 million units in the coming fiscal year, as the company takes advantage of India’s PLI scheme.
Despite its expansion plans, Motorola is also monitoring potential reciprocal tariffs from the U.S. on Indian importswhich could take effect from April 2. If the U.S. imposes a 16.5% tariff on smartphones imported from Indiathe company may scale down its production in India to 8-10 million units and shift operations to Vietnamwhere tariffs remain at 0%.
Industry leaders are urging the Indian government to negotiate a favorable trade agreement with the U.S. to keep exports competitive. Discussions are ongoing to reduce import duties on U.S. electronic goodswhich could help sustain India’s position as a key smartphone manufacturing hub.
Motorola’s decision to expand production in India aligns with the country’s growing role as a global manufacturing hub. However, the success of this shift depends on trade negotiations, tariff policies, and cost competitiveness. If India can secure favorable trade terms, it could further solidify its position as a major player in global smartphone exports.
