Chinese smartphone brand Honor is set to re-enter the Indian market, revealing plans for a relaunch through a licensing agreement with a local company. This endeavor is accompanied by an ambitious goal of initiating domestic manufacturing as early as next year. The announcement, which comes after a brief hiatus, was made by Honor’s country head in an interview with Reuters.
Honor, a brand owned by Huawei Technologies until its spin-off in 2020, has outlined its resurgence strategy by partnering with the newly formed Gurugram-based company, HonorTech. This partnership entails an undisclosed investment amount, which will facilitate the transfer of technology and hardware to facilitate the relaunch of the brand.
Acknowledging its earlier limited market presence in India, the company is gearing up for a robust re-entry with the launch of three new variants of Honor smartphones. The first of these, the mid-range “Number series,” is expected to hit the Indian market by September.
HonorTech’s CEO, Madhav Sheth, a former executive at rival brand Realme, expressed the company’s commitment to manufacturing within India. He emphasized, “All the phones will be eventually manufactured in India,” reflecting a promising commitment to local production.
This move comes at a time when several Chinese businesses have faced regulatory scrutiny in India, with bans on various apps and stricter investment regulations. Despite these challenges, HonorTech remains undeterred in its pursuit of market share and revenue growth. One of the most significant challenges for Chinese brands in India has been gaining the trust and accountability of the Indian government. Sheth, drawing from his extensive experience in the industry, noted that this partnership intends to address this challenge by establishing a strong foundation for Honor’s re-entry.
HonorTech, a wholly Indian-owned entity, aspires to capture a substantial 5 per cent share of India’s smartphone market by sales volume by 2024. With a revenue target exceeding 100 billion rupees ($1.20 billion), the company aims to challenge established competitors like Samsung Electronics, Vivo, Xiaomi, and Realme, according to insights from Counterpoint Research.
As part of its comprehensive strategy, HonorTech has pledged a significant initial investment of Rs 1,000 crore in the Indian market. This funding will drive its operations and manufacturing activities, all of which are aimed at securing a substantial market presence by the end of the coming year.
