F.P. crewDec 07, 2022 09:21:08 PM Actual
In a major setback for Vivo and the Chinese smartphone industry, Indian authorities have banned Vivo from exporting more than 27,000 smartphones for more than a week. Vivo manufactures many of its smartphones in its Indian factories, and then exports them to neighboring markets, and to China.
Smartphones have been suspended at New Delhi airport by the Finance Ministry’s Revenue Intelligence Unit. The ministry alleged inappropriate advertising of device models and their values. The exported shipment is worth more than $15 million — yet Vivo is accused of grossly underrepresenting the value of the shipment, say people close to the matter.
An industry pressure group called the government agency’s actions “one-sided and unreasonable”.
Pankaj Mohindro, president of the Cellular and Electronics Association of India, wrote in a December 2 letter to senior bureaucrats at India’s technology ministry, which was reviewed by Bloomberg News.
“Such unwarranted actions by the enforcement agencies will defuse the drive and motive to encourage electronics manufacturing and exports from India.”
Since 2020, tensions between India and China have seen several clashes amid escalating border issues, Especially around Gluan. Tensions between the two nuclear nations had never been higher except for the Indochina War of 1967. In response, the Indian government stepped up scrutiny of Chinese companies operating in India including MG Motor India Pvt Ltd of SAIC Motor Corp Ltd and local units of SAIC Motor Corp Ltd. Xiaomi Corp. and ZTE Corp. This has led to Several raids and seizure of bank accounts and other property over the past year.
The ban of Vivo shipments at the airport is likely to cause concern to other Chinese smartphone players in India. Prime Minister Narendra Modi’s government is also pushing Indian manufacturers to increase exports and build domestic supply chains With other American, European and Asian technology companies invited to come and start manufacturing their products in the country. India aims to export electronic products worth $120 billion by the end of March 2026.
Vivo exported its first batch of Indian-made smartphones in early November to markets like Saudi Arabia and Thailand. But the latest hurdle could overshadow Vivo’s future in the world’s second-largest smartphone market, where the company is already under scrutiny for alleged money laundering, an allegation that has yet to be proven in court.