The Tata Group is gearing up to establish a second assembly plant for manufacturing iPhones in India, signaling Apple's strategy to reduce dependency on China and expand its production footprint in the country.
Reports from Bloomberg highlight Apple's aim to exceed 50 million iPhone productions in India within the next 2-3 years, sparking plans for a new assembly facility in Hosur, Tamil Nadu. It's anticipated to encompass 20 assembly lines and provide employment for approximately 50,000 individuals.
While there's no official confirmation, the Tata Group's involvement in iPhone manufacturing gained traction earlier when Tata Electronics acquired Wistron's facility, marking its entry as the first domestic iPhone manufacturer in India.
This expansion aligns with Apple's endeavor to localize its supply chain, fostering a stronger alliance with Tata, which currently manages Wistron's Karnataka plant. The move aims to reduce reliance on China and enhance local production.
Apple's focus on diversifying away from China sees India as a pivotal market, witnessing substantial revenue growth during the September quarter. Plans for exclusive Apple stores, potentially managed by the Tata Group's Croma, underpin their commitment to the Indian market.
Key suppliers like Foxconn and Pegatron are amplifying their presence in India, aiding Apple in assembling over $7 billion worth of iPhones in the previous fiscal year. India's share in iPhone production surged to approximately 7%, signifying Apple's shifting production landscape.
Commerce Minister Piyush Goyal's statement earlier indicated Apple's aspiration to elevate India's contribution to iPhone production to 25%. The upcoming Hosur plant, as per Bloomberg, is positioned to be mid-sized among global iPhone factories.
The move underscores India's emergence as a burgeoning hub for electronics manufacturing, exemplifying global brands' increasing inclination towards diversifying their manufacturing base beyond China.
Earlier this year, Commerce Minister Piyush Goyal expressed Apple's ambition to increase India's share of iPhone production to 25%. The new Tata-operated plant will play a crucial role in achieving this ambitious target.
According to Bloomberg, the new Hosur facility will be a mid-sized plant compared to other iPhone factories globally. It is expected to be larger than the Wistron plant acquired by Tata but smaller than Foxconn's major Chinese facilities.
Conclusion
The Tata group's commitment to building a second iPhone assembly plant in India represents a significant development for both Apple and India. This move will not only boost iPhone production but also contribute to India's burgeoning electronics manufacturing sector and strengthen its position as a global technology hub.