Nokia phone maker HMD shifting production hub from China to India, eyes global export boost

Finnish handset maker HMD Global, known for producing Nokia-branded phones, is relocating a significant portion of its manufacturing from China to India. The move aligns with its strategy to make India a global manufacturing hub and capitalise on shifting geopolitical dynamics, as per Moneycontrol report.

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

Ravi Kunwar, HMD’s CEO and VP for India and Asia Pacific, confirmed the shift, stating, “A bulk of what we used to do out of China is being moved to India, whether it is our supply chain, sourcing or logistics hub," as quoted by Moneycontrol.

Livemint could not independently verify this news.

US-China trade war a factor

HMD hopes to benefit if the US, under the Trump administration, imposes stricter tariffs on China amid the ongoing trade tensions. “Whatever we have been exporting out of China, that percentage is going down and increasing in favour of exporting out of India,” Kunwar added, as quoted by Moneycontrol.

Building infrastructure in India

The company has relocated critical operations, including its supply chain sourcing team, to India. However, a complete shift from China is not imminent. 

“It depends on how competitive India becomes as a destination,” Kunwar noted. Factors like cost, quality, and consistency are key to accelerating the transition, as quoted by Moneycontrol.

HMD already exports Nokia feature phones and smartphones to West Asia and Africa from its Indian facilities. The company also plans to focus more on exporting to the US and Europe due to shifting global security and supply chain priorities, as per the report.

Supplier ecosystem expansion

HMD has urged component makers to set up factories in India. Kunwar said, “The component makers realise the potential for domestic consumption in India and export opportunities," as quoted by Moneycontrol.

A clear government policy is crucial for this transformation, and the Ministry of Electronics and Information Technology (MeitY) is working on a scheme for electronics component manufacturing worth ₹40,000 crore, which is expected to be finalised soon.

Local partnerships and new products

HMD relies on partners like Dixon Technologies and Zet Town India for manufacturing its feature phones in India. It recently introduced the Fusion smartphone with attachable gaming and photography accessories, part of its mid-range strategy targeting the ₹10,000– ₹15,000 price segment, the report added.

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

“Security is not just limited to government or military but concerns consumers as well. This segment is growing rapidly,” he said, as quoted by Moneycontrol.

HMD holds the license to produce and sell Nokia phones until 2026 and is renewing its focus on the Indian market to strengthen its global footprint.