Xiaomi’s mobile device manufacturing plant has set an inauguration event for March 4 to begin off production in Pakistan, which is expected to create a sales volume of 550 million units in the country.
Xiaomi, one of the world’s top smartphone firms, would commence production in conjunction with Select Technologies (Pvt) Limited, an Air Link fully owned subsidiary. The production plant is located in Kot Lakhpat’s Quaid-e-Azam Industrial Estate.
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The Chinese conglomerate, in collaboration with a local partner, is projected to produce a sales volume of 550 million in Pakistan per year. “This production facility is a step ahead in the direction of the Prime Minister’s objective of ‘Make in Pakistan,’ and will have a tremendous influence on Pakistan’s economy, resulting in export of locally built Xiaomi mobile phones,” the business said in a statement posted to the Pakistan Stock Exchange.
Xiaomi is a multinational technological behemoth that now ranks 334th among Fortune Global 500 firms. It surpassed Apple last year to become the second biggest mobile phone manufacturer, and it is now number one in Europe and many other significant regions, including India. In 2021, Xiaomi shipped a record 190.4 million smartphones.
Dr. Arif Alvi, President of Pakistan, is due to inaugurate the manufacturing plant in Lahore. In November of last year, Air Link announced a partnership with Xiaomi that will bring around $450 million in annual top-line revenue.
In Pakistan, Air Link also manufactures TCL, ITel, and Tecno mobile phones. According to the firm, it is one of the major mobile phone distributors in Pakistan, with a statewide network that includes over 1,000 wholesalers and 4,000 retailers. Air Link has complimented the government’s Mobile Device Manufacturing Policy, which has aided in-country assembly and, as a result, the capacity to export. This policy, it stated, was the impetus for them to enter the manufacturing sector.
As a result of the strategy, assemblers can import semi-knocked down units and assemble them in Pakistan while paying low tariffs and taxes. Previously, imported cellphones were taxed at a rate ranging from 20% to 25%.
When the business reported this information with PSX on Monday, its share price nearly doubled. Its share price increased from Rs54.75 to Rs56.87. Meanwhile, Abdul Razak Dawood, Adviser to the Prime Minister on Commerce and Investment, said that RealMe Mobiles has begun producing mobiles locally at their Lahore plant.
“I’d like to congratulate RealMe Mobiles, which has begun producing mobile phones locally at its Lahore operation.” This has not only generated jobs, but it has also reduced the cost of their locally manufactured cellphones.” Dawood Tweeted:
“The new development is consistent with the MOC’s (Ministry of Commerce) Make-In-Pakistan objective of boosting industrialization and import substitution,” he said. Almas Hyder, Chairman of the Engineering Development Board (EDB), stated that 30 businesses applied for authorization to set up mobile assembly units, and that 19 of the 30 had already begun assembling. “We expect the remaining firms to begin operations at their respective factories soon,” Hyder added.