MC EXCLUSIVE Beyond smartphones: Xiaomi HQ 'deeply involved' with India plans, 'value over volume' focus: COO Sudhin Mathur

Xiaomi

Home electronics giant Xiaomi’s global leadership is “fully aligned and supportive” of the two-phased India strategy - strengthening high-value smartphone and electronics, along with targetting to accelerate premium and multi-category growth from 2026 onward, the Chief Operating Officer of Xiaomi India, Sudhin Mathur has told Moneycontrol.

Xiaomi India COO dismissed the speculation that the local arm was being asked to operate independently on its own profit owing to reduced attention from the headquarters amid legal and regulatory issues. Instead, Sudhin Mathur said India has continued to be a key pillar of Xiaomi’s global operations.

“India continues to be one of the largest and most strategic markets for Xiaomi after China,” Mathur told Moneycontrol. “Our headquarters is deeply integrated with our plans - from product strategy to expansion - and the mandate is to grow faster than the market while building trust and premium experiences for consumers.”

In response to recent news reports suggesting that Xiaomi HQ had instructed regional units to become self-sustaining, Mathur said, “We are, after China, one of the largest markets for Xiaomi. From a potential standpoint, there’s no other market like India.”

Xiaomi’s footprint now extends across more than 100 countries - including strong markets in Latin America, Southeast Asia, and Europe – but India remains central to the global growth plans, said the COO. “Xiaomi is a truly global company now. With that scale, integrating international processes is natural, but India remains one of the most critical pillars of our global success,” Sudhin Mathur said.

Xiaomi India’s share in the company’s global revenue has slipped significantly, from being the second-largest contributor in 2018 with 45% share to a single-digit contribution in 2025, leaving it outside the top five markets among the 100+ countries where the company operates.

The decline in shipments began in late 2022 after Xiaomi lost its lead in the world’s second-largest smartphone market. During Q2CY25, shipments dropped 23.5 percent on-year as the company grappled with rising inventory pressure in the fast-growing premium segment, which allowed Chinese rivals Vivo and Oppo to consolidate market share, according to IDC India, a platform for telecom advisory.

Xiaomi’s long-term objective, Mathur added, is to evolve into a “comprehensive tech ecosystem brand.” Globally, nearly one-third of Xiaomi’s revenue comes from non-phone products, a shift that India is now mirroring.

The COO said that the revenue contribution of non-handset categories is increasing in India. “The contribution from TVs, tablets, and wearables has grown significantly this year. We’re clearly shifting toward becoming a high-tech, multi-category brand, not just a smartphone maker. Our focus now aligns closely with the global strategy,” Sudhin Mathur said.

Expanding Beyond Smartphones

Xiaomi’s diversification push comes as it seeks to reduce dependence on smartphones, its long-time growth engine. While phones remain central to its India operations, Mathur said non-phone categories are now gaining importance.

“We discussed moving from ‘volume to value’ for smartphones and focusing more on the premium segment… we’ve been progressing steadily. We’ve taken small, deliberate steps. By 2026, you’ll see much faster acceleration in this direction,” the COO said.

Strong Investment and Localization Drive

Despite regulatory challenges, Xiaomi remains committed to expanding its footprint and manufacturing base in India. “If regulatory or tax issues were a deterrent, we wouldn’t be investing so actively in India,” Mathur said, referring to ongoing tax and compliance issues.

The Chinese smartphone maker is facing ongoing scrutiny by the Directorate of Revenue Intelligence, Customs, Income Tax Department, and the Enforcement Directorate, resulting in over Rs 4,700 crore of its funds under freeze.

The company has expanded its local production footprint, with 100% of the televisions sold locally now made in India, and new local manufacturing lines for tablets and wearables were launched this year. Read More

Xiaomi’s next growth phase in India will be driven by premium categories, including smartphones above Rs 25,000, tablets, and smart TVs. “It’s a two-pronged strategy - sub-Rs 15,000 phones remain our main volume drivers, where we’re already strong, ranking No. 1 or No. 2 in most segments. But the market above Rs 20,000 is growing faster, and that’s where our Note and Xiaomi series will see stronger pushes next year,” said the COO.

“The sub-Rs 10,000 segment is shrinking, while the over-Rs 20,000 segment is growing. So, we need a ‘protect and attack’ strategy - protect our mass-market stronghold while attacking premium categories. We’ll continue serving mass consumers but will also showcase what Xiaomi stands for technologically through our premium range,” Sudhin Mathur said.