HMD to export India-made mobile phones to Europe, US

Handset maker HMD Global is doubling down on its strategy to use India as its manufacturing hub and plans to start exports of smartphones and feature phones to Europe and the US.

It has started shipping to markets in the Middle East and Africa.

Two years ago, the company started exporting feature phones from facilities of Indian contract manufacturing partners approved under the production-linked incentive (PLI) scheme and added the Nokia-branded G42 smartphone.

HMD has exported 2 million units from India so far and aims to double this to 4 million by the end of 2025.

The company initially targeted Middle East Africa as an export market for its HMD-branded smartphones.

The production comprises 70 percent feature phones and 30 percent smartphones and takes place through a partnership with electronics manufacturing services provider Dixon Technologies.

HMD has tied up with Zet Town India, a subsidiary of Zetwerk, to expand its capacity.

The Finnish company is now shifting its focus to promoting its brand, HMD, for smartphones in a strategic effort to revitalise its market presence, where it has struggled since its 2016 entry.

 In August last year, HMD restructured its agreement with Nokia, reducing the use of the Nokia brand for smartphones and reserving it exclusively for feature phones.

This strategic move aims to better compete with Chinese brands in Indian and global markets.

The Finnish company, however, will continue to use the Nokia brand for feature phones as it sees strong brand recall in the lower end of the market.