Google to make India a major Pixel manufacturing hub, could boost sales by at least 3x

Google has announced its plans to make India a significant hub for the production of its Pixel smartphones, starting with the Pixel 8 model.

The company is taking a bold step in local manufacturing, marking a significant shift in its strategy for the Indian market. This move is expected to boost Pixel sales in the country by at least three times, according to industry experts.

Google announced the rollout of the Made-in-India Pixel 8 smartphones through a post on X, expressing gratitude to India’s Minister of Information and Broadcasting, Ashwini Vaishnaw, for the partnership.

The decision to produce Pixel phones in India is part of Google’s broader strategy to increase its presence and market share in the country. This announcement comes just before the launch of the Pixel 9 series in India, signalling Google’s intent to strengthen its foothold in the Indian market.

Production of the Pixel 8 models will be handled by two major manufacturing firms in India: Foxconn and Dixon Technologies. These firms are set to produce the devices not only for the Indian market but also for export to Europe and eventually the United States.

This move aligns with the Indian government’s Production Linked Incentive (PLI) scheme, which aims to boost local manufacturing and exports.

Google’s decision to manufacture Pixel devices in India comes in response to the relatively low market share the brand currently holds in the country. According to Counterpoint Research, the Pixel brand’s market share in India was just 0.25 per cent in 2023, with a slightly higher 1 per cent share in the premium segment.

However, with the new focus on local manufacturing and updates, Pixel sales in India are likely to triple within the next year, according to Counterpoint Research. The market share in Q2 2023 had already increased slightly to 0.4 per cent, but the real growth is anticipated in the second half of the year.

Google’s strengths in generative AI (GenAI) and camera technology, combined with expanded sales channels and local manufacturing, could lead to more competitive pricing for new products.

This, in turn, is expected to drive significant growth in the Indian market. Additionally, he pointed out that Google has the potential to capture a share of the Enterprise segment, which could further boost its market presence.

Despite the brand’s minimal market share of 0.1 per cent in the Indian smartphone market, the decision to produce Pixel devices in India marks a strategic shift that could help Google realize its potential in the region over time.

The timing of the announcement, just a day before the Pixel 9 series launch in India, underscores Google’s commitment to the Indian market.

By establishing a manufacturing base in India, Google is not only looking to cater to local demand but also aiming to make India a key player in its global supply chain for Pixel devices.

Google’s decision to make India a major hub for Pixel smartphone production is a significant move that could reshape its market dynamics in the country. With the potential for a threefold increase in sales, this strategy could help Google gain a stronger foothold in the competitive Indian smartphone market.