Google started to manufacture a few of its Pixel phones in India last year and as per a latest report by the Economic Times, the company is gearing up to expand Pixel production in the country. The report suggests that Google is in talks with its Indian manufacturing partners Dixon Technologies and Foxconn to boost production as the tech giant looks to reduce its reliance on Vietnam, which currently serves as a major hub for Pixel assembly.
It is believed that the potential shift is being driven by proposed new US import tariffs that would significantly affect devices assembled in Vietnam. Reports suggest that products imported from Vietnam could face duties as high as 46%, compared to 26% for those coming from India. This disparity is pushing companies like Google to reconsider their supply chain strategies.
In contrast, China, where Google still produces a portion of Pixel smartphones, faces a 145% tariff, making it a far less viable option for US-bound exports. Despite a 90-day pause on the new tariffs that took effect from 9th April, a 10% baseline duty remains in place, keeping cost pressures high.
Production in India Already Underway
Google currently manufactures approximately 43,000 to 45,000 Pixel units per month in India, primarily for the domestic market. Dixon Technologies at its Noida plant leads the production, while the newer models are assembled in partnership with Taiwan’s Compal Electronics. Foxconn is assembling older Pixel variants at its Tamil Nadu facility and was the first to begin production in India in August last year.
Apart from assembling, Google may also explore localisation of key components such as enclosures, fingerprint sensors, chargers, and batteries. These parts that are currently imported. The broader aim appears to be not only scaling up final assembly in India but also deepening the supply chain to reduce dependence on external markets.
Fast-Tracking Due to Changing Trade Dynamics
Initial plans projected a gradual shift over the next two to three years, but the threat of higher tariffs is prompting Google to accelerate its strategy. The company is now considering ramping up Indian production not just for the domestic market but also for exports to the US. Other tech firms are reportedly following a similar path. Recently, Nothing CEO Carl Pei also hinted at expanding exports from India in light of the looming tariff changes.
Leave a Reply