India sees spurt in 5G smartphone shipments from China despite recent crackdowns on alleged tax evasion

India is seeing increased shipments of 5G smartphones from China despite recent crackdowns by the federal investigating agencies on Chinese phone makers on allegations of tax evasion.

The government is looking into alleged duty evasion by Chinese smartphone manufacturers Oppo Mobiles, Vivo India and Xiaomi.

Yesterday, the Directorate of Revenue Intelligence (DRI) said it has detected a customs duty evasion to the tune of Rs 2,217 crore, during an investigation pertaining to Vivo Mobile India Private Limited (Vivo India). Consequently, a show cause notice has been issued to the smartphone company.

DRI had also issued a ₹4,389 crore customs duty demand notice to Oppo India. Three show-cause notices have been issued to Xiaomi and the total duty liability on the company is ₹653 crore. The company has deposited ₹46 lakh, Finance Minister Nirmala Sitharaman had informed the parliament.

The demand on Vivo India is for ₹2,217 crore, against which it has given ₹60 crore as a voluntary deposit, she informed the house.

The Directorate of Enforcement (ED) is also looking at 18 companies established by Vivo that have remitted large amounts of money from India.

Shipments of 5G smartphones in India grew 163 per cent (year-on-year) in the April-June period, and Samsung led the segment with a 28 per cent market share, followed by Vivo with a 15 per cent market share, a report showed on Thursday.

One out of every three smartphones shipped in Q2 2022 was a 5G capable smartphone as shipments grew 7 per cent (quarter-on-quarter), according to Cyber Media Research (CMR)’s ‘India Mobile Handset Market’ report.

“With the completion of 5G auctions, and anticipated roll-out of 5G services in India shortly, there will be further momentum in 5G smartphone shipments,” said Menka Kumari, analyst- Industry Intelligence Group, CMR.

5G smartphone shipments in Rs 7,000-Rs 24,999 price range grew more than 160 per cent YoY. Affordable smartphone shipments (sub-Rs 7,000) declined 61 per cent YoY.

“Premium smartphones (Rs 25,000-Rs 50,000) and super-premium smartphones (Rs 50,000-Rs 1,00,000) grew by 80 per cent and 96 per cent, respectively,” the report said.

Most of the major Chinese smartphone brands in the top five smartphone leaderboard registered a healthy growth during the quarter, barring the smartphone market leader.

Xiaomi (20 per cent), Samsung (18 per cent) and Realme (16 per cent) captured the top three spots in the smartphone leaderboard in Q2, followed by Vivo (15 per cent) and OPPO (10 per cent).

Apple topped the super-premium (Rs 50,000-1,00,000) segment with 78 per cent market share.

The iPhone 12 and iPhone 13 series contributed to a majority of the iPhone shipments during the quarter.

“We anticipate H2 2022 to potentially see some easing of supply-side constraints in the run-up to the festive season, said Amit Sharma, analyst, IIG, CMR.

(With inputs from IANS)


This website uses cookies. By continuing to use this site, you accept our use of cookies.