It seems that Lenovo - Motorola is in an expansion mode as both are planning to set up its own factory in the country, TOI reported.
The report says that, "the company is currently watching the development around Goods and Services tax and the tax structures."
On setting up its own plant in the country, Dillon Ye, head of Lenovo's mobile business group told TOI, "we are looking at potential." Adding that "we are studying the government policy carefully, such as rollout of GST."
Currently, Lenovo Chennai plant is under contract manufacturing with Flextronics, one of the company's global partners and Moto E was the first smartphone that company produced in India. This is the only facility where both Lenovo and Motorola smartphones are being manufactured, outside China.
Recently, another Chinese smartphone player, Xiaomi has set up a second factory in Andhra Pradesh's Sri City, where 90 percent of the employees are women. The smartphone maker has been an early supporter of Modi's 'Make in India' initiative.
The company has opened its first plant in August 2015 and by March 2016, over 75 percent of its phones were being manufactured in India.
Xiaomi's founder, chairman and CEO Lei Jun has recently met the Prime Minister Narendra Modi to discuss the plan to create more than 20,000 jobs in the country in the next three years.
He also met the Minister of Finance, Defense, and Corporate Affairs Arun Jaitley and Minister of Law & Justice and Electronics and Information Technology Ravi Shankar Prasad.
According to analyst firm IDC, Xiaomi India has become the number one selling smartphone brand online and the second-largest smartphone brand in India in Q4 2016.