As the market expands aggressively, Lenovo-Motorola combine plans to set up a company-owned factory in the country. But, the company is looking the GST rollout before it makes a final decision.
Dillon Ye, Head, Lenovo's mobile business group, said, "The Indian market has been growing strongly for the company, prompting it to look at portfolio upgrades and fresh investments. We are looking at potential options."
He added, "We are studying the government policy carefully, such as rollout of GST."
Currently the company sources a part of its requirement from contract manufacturer, Flextronics that makes the devices at its Chennai facility. Phones sourced locally include Moto's E and G models and Lonovo's K Series.
The government’s 'Make in India' initiative has prompted number of companies to opt for local manufacturing in India. Current benefit for 'Make in India' products is roughly 12.5% (lower duty) when compared to sourcing the same from overseas.
Local benefits have also prompted other Chinese makers to start sourcing in India.