After Xiaomi will be fined 5 billion yuan, some domestic media believe that India is still full of attractiveness, and many foreign companies are still going to India, but is this really the case? The author believes that this may be what the media people say for eyeballs, not the real situation in India.
1. Chinese mobile phone companies are cautious about India
After Xiaomi will be fined 5 billion yuan, Lei Jun, the founder and chairman of Xiaomi, also said that he will continue to invest in India, but in fact it is the recent Indian media reports that the number of employees of Xiaomi India has quietly decreased from about 1,500 to 1,000. , so the entrepreneur's statement is on the one hand, and his actual actions may represent his true thoughts.
From Xiaomi's approach, it can be seen that Chinese mobile phones have adopted a cautious attitude towards the Indian market. The other three Chinese mobile phone companies vivo, OPPO, and realme have also suffered some unfair treatment in India. These Chinese mobile phone companies may adopt a strategy similar to Xiaomi. practice.
In fact, Chinese mobile phones have also made a big deal of investing in India before. They even said that they will build Indian factories as export bases to the Middle East and Africa. However, after so many years, their factories in India still mainly serve the Indian market and export to other regions. The phones are still made by factories in mainland China.
2. Other foreign-funded enterprises have a hard time in India
Tesla founder Musk's visit to India is seen as an important basis for foreign companies to continue to value India. However, Musk has repeatedly appeared before, and there are still doubts about whether he will really invest in India this time.
At present, American companies that have gained a firm foothold in the Indian market, such as Amazon and Wal-Mart, have repeatedly encountered troubles in India. Amazon once acquired a local Indian retailer. However, instead of getting a return on investment, Amazon was instead The acquired Indian local physical retailers are gradually being hollowed out by Indian local consortiums, which shows the complexity of the Indian economic environment.
The most profound lesson for these American companies in India is Ford. Ford invested in India many years ago, but Ford has been suffering losses in India. In the end, Ford decided to withdraw from India but was forced to pay a price of 1.8 billion US dollars. Ford’s lesson It is more worthy of Tesla, which is also in the auto industry.
Of course, Wistron, which was acquired by an Indian consortium this year, has caused many foreign-funded companies to become wary of investing in India. Wistron was once one of the world's well-known foundries. It once owned a factory with 80,000 employees in mainland China. For many years, Wistron has owned the leading power of this factory. However, the factory established by Wistron only two years after entering India has only 10,000 people. The Indian consortium
3. Foreign companies may overestimate the Indian market
India lacks a manufacturing foundation. India has actually developed the mobile phone industry for a long time. Before Chinese mobile phone companies entered the Indian market in 2017, India had developed local Indian brands such as micromax and lava. However, it was discovered that the mobile phone was manufactured by a Chinese company, branded as an Indian brand, and then shipped to India for sale. Later, Foxconn, Wistron, etc. built factories in India to produce iPhones, and they also shipped a large number of mobile phone accessories from China, because India lacks an industrial chain. .
The inability of the Indian market to accept Tesla’s price will also hinder Tesla’s entry into the Indian market. In 2019 before the new crown, the best-selling cars in India were all cars below 100,000 yuan, and the ones generally accepted by the public were For cars between 30,000 and 70,000 yuan, Tesla’s model 3, which sells for more than 200,000 yuan in the Chinese market, is too expensive compared to the consumption level in the Indian market.
These factors will hinder Tesla from going to India to set up a factory. Musk is a typical example of not seeing rabbits and not spreading eagles. Faced with India's weak manufacturing base, it may be difficult for him to invest in India to achieve results in a short period of time, let alone It is said that Amazon, Ford and other American companies have encountered in India.
In fact, advocating investment in India has always been a hot spot for European and American media. They try to compare China with India. However, India is still the same after decades, while China has changed from being almost the same as India back then to being far ahead of India today. , now Chinese media people are also focusing on India as a hot spot for publicity, which is a bit grabbing the microphone of European and American media. However, facing the reality is what entrepreneurs need to consider. What they value is actual interests, and India has repeatedly proved that it is difficult to bring them expected benefits.