Chinese smartphone companies have come under intense scrutiny in India in recent years, facing various allegations including customs duty evasion, income tax evasion, and money laundering. In an effort to address these issues and reconcile with the Indian government, leading brands like Vivo and Oppo are taking proactive steps.

A report in the Economic Times highlights that Vivo and Oppo are now appointing Indian distributors in each state to serve as the primary source of product supply. This move aims to resolve longstanding conflicts with the government and comply with its directives. Among the key requirements set forth by the government, appointing Indian distributors stands out as a critical step.

So, what exactly are these three key requirements that the government is urging Chinese companies to fulfill? Let’s delve into the details:

1. Indianize Senior Management: The foremost requirement is for Chinese smartphone brands to have an Indian management structure. This entails having key executives and decision-makers of Indian origin to oversee operations and strategic decisions.
2. Appoint Indian Distributors: Another crucial requirement is the appointment of Indian distributors to manage product distribution within the country. Previously, these brands relied on Chinese-owned and managed distribution companies, often referred to as agents. However, Vivo and Oppo are now transitioning to a model where Indian distributors will handle distribution in states like Delhi, Punjab, and Haryana. This move aims to localize the distribution structure and streamline operations. Xiaomi and Realme have already adopted this approach, utilizing Indian entities for distribution from the outset.
3. Use Local Contract Manufacturers: Lastly, the government has urged Chinese smartphone companies to utilize local contract manufacturers for production. Brands like Oppo, Vivo, and Realme have already initiated partnerships with Indian contract manufacturers such as Dixon Technologies and Karbonn Group to manufacture smartphones locally. This move not only aligns with the government’s push for ‘Make in India’ but also fosters economic growth and employment opportunities within the country.

In essence, these initiatives signify a concerted effort by Chinese smartphone companies to align with Indian regulatory requirements and foster stronger ties with the government and consumers alike.