Motorola weighs entry into Rs 23,000-cr electronics PLI scheme amid tariff uncertainty; forays into laptop market

“The procurement strategy team would be working on this as to how do we participate in it. The endeavor from our side is to take it forward towards the larger goal of making India more critical for Motorola global, because India is a critical market for global, both in terms of revenue and volumes,” Narasimhan said.

When asked if Motorola’s management has started recalibrating its global supply chain and manufacturing strategy in the wake of recent US-imposed reciprocal tariff developments, the executive said the team is assessing all possible scenarios. He, however, declined to share specifics, terming it a “flux situation.”

“...obviously we have our manufacturing facilities in multiple locations. So whatever is the best possible, optimised solution as an organisation, the global strategy team would be taking that call,” he added, highlighting India’s growing importance in Motorola’s global manufacturing and revenue plans.

Motorola has been a key beneficiary of the smartphone PLI scheme. It works with Dixon to make its smartphones in Noida and has been exporting them to the US using the scheme’s benefits.

Dixon Technologies managing director Atul Lall told Moneycontrol last week that the EMS company is currently in discussions with Motorola to map out scenarios emerging from tariff-related developments. “They have a global footprint, and we are the largest one,” he added.

India and Vietnam are emerging as clear beneficiaries of the Trump administration’s recent tariff recalibration on consumer electronics. The US lifted reciprocal tariffs on items such as smartphones, laptops, and tablets while keeping steep duties on goods made in China, which still faces a 20% tariff on electronics. By contrast, India and Vietnam enjoy zero tariffs on all smartphones.

Narasimhan said India is “extremely critical” to the company’s global revenue and volume ambitions.

Currently ranked among Motorola’s top three global markets, India also plays a crucial role in the company’s manufacturing footprint, being one of only four countries where Motorola devices are produced.

Motorola has factories in Brazil, Argentina, China, and India.

The Lenovo-owned brand is now diversifying into tablet and laptop categories in India, launching the Moto Book 60 (its first laptop) and Moto Pad 60 Pro, a tablet PC.

“The way we have grown the smartphone business over the last three years, specifically in India, from a 1.5 percent to 8 percent share in a few years, gives us confidence to build an ecosystem of connected devices,” the executive said, adding the company is confident of replicating its smartphone success in the tablet and laptop categories.

Motorola more than doubled its smartphone market share to 8 percent in the October-December quarter of 2024, becoming the second fastest-growing smartphone brand after London-based Nothing, according to IDC.

The company designed and developed the tablet and laptop for the Indian market. After reaching certain sales milestones, it plans to manufacture them locally.

“The scale is too small for us to set up local manufacturing. The global team will decide on a future strategy depending on the success. The parent company [Lenovo] is the world's number one laptop vendor. So, we can scale,” he added.

Motorola, he said, is on track to become the third-largest-selling smartphone brand in India by 2026. “The ambition is to grow and reach one of India's top three brands by 2026. That’s our global goal as well,” he said.