Four domestic smartphone players intend to seek acceptance under the Centre’s newly notified Mobile Phone Manufacturing Scheme (MPMS), underlining India’s renewed push to strengthen local production and boost exports. The newly unveiled ₹62,500 crore MPMS is designed to replace the Production-Linked Incentive (PLI) scheme for mobile devices, which completed its term in 2025-26.
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## Who’s Joining the Fray
Among the first companies expressing interest in MPMS are Dilox Technologies (India), Amber Enterprises India, Lava International, and NxtQuantum Shift Technologies (NxtQST). These firms cover a range of segments — from original equipment manufacturers (OEMs) to Indian brands — signaling a broad uptake of the scheme.
– **Amber Enterprises**: Known largely for air conditioner OEM business, Amber recently forayed into mobile production by partnering with Oppo Mobiles India. This collaboration involves assembling phones under Oppo, Realme, and OnePlus brands.
– **Lava International**: A homegrown Indian mobile brand, Lava has confirmed its intention to apply under the scheme specifically for its own product line.
– **NxtQST (Ai+ brand)**: Founded by Madhav Sheth, formerly of Realme, NxtQST focuses on affordable smartphones like Pulse (4G) and Nova (5G). The company has already invested $10 million into R&D and built a team of over 600 engineers ahead of applying under the scheme.
– **Dixon Technologies**: As an established OEM, Dixon plans to apply under the scheme. It already assembles phones for major players like Motorola, Xiaomi, and Transsion, and exports phones to markets including the US and Africa.
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## Key Features of the Mobile Phone Manufacturing Scheme
The MPMS introduces fresh criteria to drive localization and encourage exports, offering enhanced incentives over the previous PLI scheme. Here’s what participants must deliver:
– **Mandatory IP and Design Capabilities**: Companies must not only conduct R&D within India but also have ownership over their design and intellectual property.
– **Majority Local Ownership**: At least 51% of the equity must be held by Indian stakeholders.
– **Eligibility Categories**: “T2” category supports Indian mobile brands — Lava and NxtQST will apply under this segment.
Through these rules, the government seeks to go beyond export incentives by ensuring innovation and ownership remain onshore.
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## Production Plans and Market Strategy
### Amber Enterprises
Amber expects trial production to commence in March 2027 as it steps into the mobile manufacturing sector for the first time. Key targets include producing 8–9 million phones in the first year, scaling up to 13–15 million units in year two. These goals are underpinned by its Oppo, Realme, and OnePlus tie-up.
### Dixon Technologies
Already a veteran of the PLI scheme, Dixon is leveraging its manufacturing and export infrastructure to capitalize on MPMS incentives. Among its projects:
– Assembling phones for brands like Motorola, Xiaomi, and Transsion.
– Supplying phones for Google Pixel in India, with Google contemplating shifting more production out of China.
– In finalizing a joint venture with Vivo, where Dixon would hold a 51% stake to assemble millions of Vivo phones locally. Output aims lie around 20–22 million units annually, plus another 3–4 million units earmarked specifically for export.
Lava and NxtQST also plan to establish outputs under category T2, where support is tailored for Indian brands. The government anticipates approximately three players will apply within this category.
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## Why the Scheme Matters
The MPMS seeks not just to replace but to outdo the PLI initiative. It focuses more keenly on:
– **Export Incentivization**: By expanding global reach and tapping markets beyond India.
– **Localisation**: Mandating domestic R&D, design, and high Indian ownership, the scheme aims to nurture homegrown innovation and reduce dependence on foreign IP.
By layering these requirements onto financial incentives, MPMS stakes its claim as a comprehensive strategy for making India a globally competitive hub in mobile manufacturing.
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As the mobile manufacturing landscape in India evolves, the MPMS could mark a transformative advance in strategy. For companies like Amber, Lava, NxtQST, and Dixon, the scheme offers not just financial incentives but a pathway to deepen their roots and extend their global footprint.
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