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Google might enhance Pixel manufacturing in India amid US-China tariff tussle: Report
Google began to fabricate just a few of its Pixel telephones in India final yr and as per a contemporary report by the Financial Instances, the corporate is gearing as much as increase Pixel manufacturing within the nation. The report means that Google is in talks with its Indian manufacturing companions Dixon Applied sciences and Foxconn to spice up manufacturing because the tech big seems to cut back its reliance on Vietnam, which presently serves as a significant hub for Pixel meeting.
It’s believed that the potential shift is being pushed by proposed new US import tariffs that might considerably have an effect on gadgets assembled in Vietnam. Experiences recommend that merchandise imported from Vietnam may face duties as excessive as 46%, in comparison with 26% for these coming from India. This disparity is pushing corporations like Google to rethink their provide chain methods.
In distinction, China, the place Google nonetheless produces a portion of Pixel smartphones, faces a 145% tariff, making it a far much less viable possibility for US-bound exports. Regardless of a 90-day pause on the brand new tariffs that took impact from ninth April, a ten% baseline obligation stays in place, holding price pressures excessive.
Manufacturing in India Already Underway
Google presently manufactures roughly 43,000 to 45,000 Pixel models monthly in India, primarily for the home market. Dixon Applied sciences at its Noida plant leads the manufacturing, whereas the newer fashions are assembled in partnership with Taiwan’s Compal Electronics. Foxconn is assembling older Pixel variants at its Tamil Nadu facility and was the primary to start manufacturing in India in August final yr.
Other than assembling, Google may discover localisation of key parts equivalent to enclosures, fingerprint sensors, chargers, and batteries. These components which might be presently imported. The broader goal seems to be not solely scaling up remaining meeting in India but additionally deepening the availability chain to cut back dependence on exterior markets.
Quick-Monitoring Because of Altering Commerce Dynamics
Preliminary plans projected a gradual shift over the following two to 3 years, however the specter of increased tariffs is prompting Google to speed up its technique. The corporate is now contemplating ramping up Indian manufacturing not only for the home market but additionally for exports to the US. Different tech companies are reportedly following the same path. Just lately, Nothing CEO Carl Pei additionally hinted at increasing exports from India in mild of the looming tariff modifications.
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