Motorola accepts import duty hike on mobile handsets: Says it will lead to more job creation

Motorola Mobility India has now willingly accepted the government's decision to hike customs duty from 10 percent to 15 percent on mobile handsets.

"We welcome the government's decision as it will provide further impetus to the 'Make in India' initiative," Sudhin Mathur, Managing Director, Motorola Mobility India, told IANS. "As a brand, Motorola's journey of 'Make in India' began three years ago and we are well on our way to being fully locally manufactured," Mathur added.

Currently, the Lenovo owned brand, makes and assembles smartphones at its manufacturing unit in Sriperumbudur near Chennai through global contract manufacturing partner Flextronics. It seems the hike has affected the company not so much as it done Apple. The Cupertino based company has increased the prices of almost all the iPhones series in India recently. The only device that has not received the price hike is the iPhone SE which is being manufactured in India.

Meanwhile, with a combined market share at nine percent, Lenovo-Motorola became the third top smartphone brand in India in the third quarter this year, according to IDC. And now with the competition shifting to the retail market, Motorola has realigned its focus on opening "Moto Hubs" in the country.

Besides the company is planning to open "Moto Hubs" in 250 Poorvika Stores across 43 cities in Tamil Nadu, Pondicherry, and Karnataka. The company currently has six "Moto Hubs" (without the partnership) in Delhi-NCR and Mumbai and opened three such stores in Kolkata. Motorola has also announced the first-ever experiential store in south India.

"This move [on import duty] by the government will lead to more job creation and further enhance the manufacturing sector," Mathur told IANS.