Wednesday, December 4, 2024

According to Peter Chang, Asus is still learning how to manufacture in India.

Asus, along with a number of other OEMs, is intently focused on India. The Taiwanese company has risen to the second position in the country’s consumer segment after making headway in the HP, Dell, and Lenovo-dominated Indian PC market. Even though the company’s local production endeavor is only in its first year, Asus has big aspirations for India, a country with a sizable and expanding personal computer market.

“We are just getting started,” stated Peter Chang, Asus’s general manager for the APAC area. On the fringes of Computex Taipei, which took place from June 4 to June 7, Chang spoke with Gadgets 360 about the company’s future in India, its intentions for local production, and other topics.

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Asus established a new manufacturing facility in Chennai last year as a result of the Indian government’s revised production-linked incentive (PLI) policy, which promised to spend Rs. 17,000 crore on IT hardware. Although the plant has only been operating for a few months, Asus plans to increase local production in the upcoming years. Chang stated that the company was still in its infancy and that the outcome of the initial years will determine whether or not it met its manufacturing goals in India.

We are flexible, but establishing a specific goal also depends on how things work out in the first and second years. Therefore, I believe that our current goals for the first year are roughly 10%,” Chang stated. After that, we will grow every year. We shall assess this one step at a time. We are still learning about it, for that reason, he continued.

IDC data indicates that the Indian market for traditional PCs, which include desktops, laptops, and workstations, is still showing promise. In the first quarter of 2024, it grew by 2.6 percent year over year. For the third consecutive quarter, the consumer PC market—in which Asus is the second-biggest player in the nation—saw YoY increase of 4.4 percent. According to technology market analyst Canalysis, India’s consumer and business PC markets would expand this year at a YoY rate of 14%. According to Chang, the Indian PC market is growing, but it is still not large enough to “sustain the whole ecosystem.”

“As an illustration, the Indian smartphone market is presently extremely developed. The market is large enough to support the entire ecosystem, according to Chang, who also stated that the laptop market needed to follow the same course. “Once you reach a certain size and scale, there may be mutual benefits for both the industry and the final consumer.

This, in my opinion, is a crucial requirement for the local PC manufacturer to succeed. Therefore, Chang stated, “It is imperative that Asus supply the solution locally to the end user, given our highly ambitious ambition for India. He said that Asus’ intentions in India depended on how well it balanced pursuing its own goals with meeting the requirements of the government.

That being said, the first part is not simple. There are particular challenges in India’s policy environment for IT companies and OEMs. It may also be erratic. In August of last year, the government announced that it will put license restrictions on imports of laptops, PCs, and tablets in an apparent attempt to increase local manufacturing. However, following condemnation from the US and pushback from the PC industry, the import limits were rolled back. In October, they were eventually overturned in favor of a new system that could track PC shipments without having a negative impact on the availability of the market.

In India, Asus is still getting used to navigating and “managing” these policy obstacles. Regarding the import limitations, Chang remarked, “One good thing is that the government previously communicated the rule with us in advance, so at least we got to know it.” We have not completed the first year, therefore it is still in the early stages. We can therefore see that setting up local manufacturing, a production facility, electricity, an import order, key components, and all the equipment, as well as mass producing efficiently and with good quality control, will all alter how quickly we can complete the investment and meet the requirements set forth by the government,” he continued.

At its maiden Galaxy Unpacked presentation in South Korea, Samsung unveiled the Galaxy Z Fold 5 and Galaxy Z Flip 5 in addition to the Galaxy Tab S9 series and Galaxy Watch 6 series. In the most recent edition of Orbital, the Gadgets 360 podcast, we talk about the company’s new products and more. Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and other podcast subscription services provide Orbital

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