FEBRUARY 20259LENOVO EN ROUTE TO SCALE LOCAL MANUFACTURING OF LAPTOPSMERCEDES-BENZ SHIFTS FOCUS FROM MAJOR CITIES TO MINOR CITIES FOR EXPANSIONLenovo is on track to double its local production of smartphones and laptops in India during the 2024-25 fiscal year, increasing output from the 6.4 million units produced in 2023-24, according to Lenovo India Managing Director Shailendra Katyal.Germany's Mercedes-Benz, following a year of record sales in India, plans to open an additional 20 dealerships or service outlets in 2025, focusing primarily on minor cities where young, well-traveled business owners are increasingly indulging in luxury goods. India's rapid economic growth has prompted a shift in attitudes toward luxury purchases, especially among the younger generation. Unlike their elders, who prioritized frugality and saving, Katyal shared that the company is committed to scaling up its local manufacturing operations annually. Lenovo is preparing to produce nearly all its personal computer models in India, having already achieved 100 percent local production for its Motorola smartphones. This expansion is driven by Lenovo's participation in the Indian government's Production Linked Incentive (PLI) scheme and the push for global brands to boost domestic manufacturing. In the 2022-23 fiscal year, Lenovo produced 5 million units in India.The company plans to produce over 12 million units in India in the 2024-25 fiscal year, enabling a significant reduction in imports. Lenovo is also working to develop a robust component ecosystem within the country. Katyal added that local production is expected to grow by 40 percent in the following fiscal year, 2025-26, compared to the current fiscal year's target.Lenovo's manufacturing operations in India include laptops and desktops produced at its company-owned plant in Puducherry, which will soon also produce artificial intelligence servers. Additionally, Motorola smartphones, tablets, and laptops are manufactured by contract partner Dixon Technologies. This expanded local production aligns with Lenovo's strategy to strengthen its presence in India and support the government's "Make in India" initiative. younger Indians, particularly those in the second and third generation of family businesses, are more open to luxury consumption. "They've studied abroad, come back, and are able to consume without guilt," explained Santosh Iyer, CEO of Mercedes-Benz India. This shift is not limited to cars but extends to watches and other luxury items as well.As a result, Mercedes-Benz, which currently operates 125 outlets in India, is looking beyond the major cities like New Delhi and Mumbai. Smaller towns such as Kanpur, with a population of 3 million, and Patna, with over 2 million residents, are showing a growing demand for high-end and electric models of luxury vehicles rather than entry-level ones. In these cities.Mercedes-Benz, the best-selling luxury car brand in India, recorded over 19,500 vehicle sales last year, reflecting a 12 percent increase. This success was driven by new car launches and a strong portfolio of electric vehicles (EVs), which saw nearly double the sales compared to the previous year. For 2025, the company plans to launch eight new car models, including EVs, with the expectation of surpassing last year's sales figures.BMW, the No.2 luxury vehicle seller in India, also saw record sales, selling close to 16,000 vehicles, further underscoring the growing appetite for luxury cars in the country.
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