India to serve as Xiaomi’s South Asia headquarters as the company evaluates local manufacturing partners for air-conditioners, refrigerators and washing machines amid efforts to diversify beyond smartphone
Chinese consumer technology company Xiaomi is preparing to enter India’s large home appliances market as part of a broader strategy to diversify beyond smartphones and strengthen its connected devices ecosystem, according to media reports.
The proposed expansion comes as smartphone penetration in India approaches maturity and Xiaomi looks to unlock new growth opportunities in one of its most important overseas markets. The company is expected to compete with established appliance manufacturers including Samsung, LG, Haier, Whirlpool and IFB through categories such as air-conditioners, refrigerators and washing machines.
The move would represent Xiaomi’s most significant category expansion in India since its entry into the smart television segment. Industry executives cited in media reports said the initiative is being viewed as a long-term investment in the Indian market rather than a short-term diversification exercise.
As part of the plan, Xiaomi is evaluating partnerships with local electronics manufacturing services (EMS) companies to produce the appliances domestically. The company is reportedly assessing the technological capabilities of potential partners and their ability to support technology transfer requirements needed for local manufacturing.
Leadership Transition
The expansion coincides with a leadership reshuffle at Xiaomi’s India operations. Alex Tang has taken over as head of the South Asia region following the departure of Alvin Tse to Beijing.
According to media reports, Tang’s appointment is closely linked to Xiaomi’s appliance ambitions in India. He previously led Xiaomi’s Southeast Asia operations, where the company successfully localised and expanded its large appliance business outside China.
India has also been elevated as Xiaomi’s South Asia headquarters, covering markets including Nepal, Bangladesh and Sri Lanka. These markets were previously managed directly from Beijing. The company is expected to establish a dedicated regional support team based in India over time.
Separately, Chief Marketing Officer Anuj Sharma is stepping down from his role as the company restructures its India operations.
Ecosystem Expansion
Senior Xiaomi executives have increased their engagement with India in recent months. Adam Zeng, Senior Vice President of Xiaomi Group and President of its International Business Department, visited the country earlier this year to review growth opportunities and evaluate the expansion of Xiaomi’s ecosystem and Internet of Things portfolio.
Several global product teams have also travelled to India to study consumer demand, assess local manufacturing capabilities and identify potential categories within the appliance segment.
According to media reports, Xiaomi’s global and India teams are currently evaluating both product categories and manufacturing partnerships before finalising launch plans.
The company has attempted to broaden its ecosystem portfolio in India in the past. However, earlier efforts to introduce products such as water purifiers and robotic vacuum cleaners reportedly faced supply chain constraints and certification-related delays because the products were imported.
Premiumisation Gains Pace
Xiaomi’s non-smartphone business is also witnessing strong momentum. Company executives have reportedly indicated that television revenue has grown by around 35 per cent year-on-year, while the tablet business has expanded at an even faster pace.
The company is also seeing increased demand for premium smartphones. Xiaomi’s average smartphone selling price reportedly rose by nearly 36 per cent during the first half of the year, while sales in the Rs 35,000-Rs 50,000 segment increased by almost 212 per cent.
With an installed base of more than 125 million smartphone users in India, Xiaomi is expected to leverage its existing customer ecosystem to drive adoption across a wider portfolio of connected products and home appliances.
