Asus plans to start local manufacturing in India, in talks with EMS players

In what could be interesting, the Taiwanese tech firm is planning to set up local manufacturing of its laptops in India. The discussions with electronics manufacturing services (EMS) providers to ‘evaluate the possibility’ of making products in the country were initiated in April this year.

While the company aims to capture a 20 percent market share in the consumer laptop segment this year, Asus is in talks again with local EMS providers to begin local manufacturing of its laptops.

“Like other brands/companies, we will need to work with the EMS players to leverage the PLI scheme. We are working with our EMS to align with the PLI scheme with the government. The talks are already ongoing. We don’t have a precise timeline, but we want to make it happen as early as possible,” Arnold Su, Business Head, Consumer and Gaming PC, System Business Group, ASUS India told ET outlet.

The executive had earlier noted India to be one of the top five countries globally and in Asia in terms of the PC market size. Asus cited to be number four consumer PC brand in India, the company grew close to 40 percent year-on-year in Q2, as per ET report.

“If we look at the overall market, India is the biggest consumer PC market in the entire Asia Pacific and a very important market for Asus as well. So, this year, we are aiming to capture 20% market share in the consumer laptop segment in India,” the executive told the publication.

Mr. Su said that India’s PC penetration still rides low at around 10 percent, however, the pandemic has boosted the growth for PCs and laptops. The company sees it as a big opportunity not just for themselves but for all PC makers to further invest in the country and meet the ongoing demand.

While the brand is known for bringing power-packed gaming machines, Asus is bidding high on the gaming PC market in the country as well especially with its ROG lineup. As for the mainstream laptop segment, the company is targeting to boost growth for thin and light laptops.

Till 2019, 2-in-1 only occupied around 5% of the entire PC market, making it a very niche segment. But in the first half of 2021, the segment has already occupied around 5% of the entire PC market, making it a very niche segment. But in the first half of 2021, the segment has already occupied close to 9% of the PC market,” Mr. Su told the outlet.

The executive cites that the offline channel still contributes to around 60 percent of India’s consumer PC market and going forward, the company plans to invest in their retail expansion. Currently, Asus has close to 150 exclusive stores in India and the company plans to expand it to around 200 by the end of this year. While Arnold had earlier revealed about the company closely monitoring the possibility for ‘made in India’ products, with the recent spike in demand, the firm now seems to set the next foot in the country.

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