Xiaomi makes itself at home in India with first ‘made in India’ phone

Xiaomi’s Hugo Barra (left) and N Chandrababu Naidu, chief minister for Andhra Pradesh, show off the made-in-India Redmi 2 Prime phone this afternoon. (Image: Xiaomi)

Chinese gadget maker Xiaomi today unveiled the first phone it’s manufacturing in India. With India set to overtake the US in 2017 to become the second largest smartphone market after China, the fast-growing company is looking to make itself at home in the Indian market.

Xiaomi’s Hugo Barra this morning described the initiative to manufacture a phone in India as “a huge step forward” for the startup, which entered the nation last year with its line of Android-based budget smartphones.

In for the long haul

The new made-in-India phone revealed this afternoon is the Redmi 2 Prime, a beefed-up version of the Redmi 2 phone that was launched earlier this year. The Redmi 2 Prime costs INR 6,999 (US$110).

“We started looking at options for local manufacturing as soon as Xiaomi entered India in July last year,” said Manu Jain, Xiaomi’s India boss, in a statement. “Local manufacturing shows Xiaomi’s commitment to being in India for the long haul, and we are also able to contribute to generating more jobs in India. We are truly excited to be playing a role in enhancing the quality of life of the people of India.”

Xiaomi’s newest phone is produced by Foxconn in a dedicated business zone of Sri City in the state of Andhra Pradesh that’s home to an array of global manufacturing and service companies. The launch event took place in Visakhapatnam, the largest city in the state.

N Chandrababu Naidu, chief minister for Andhra Pradesh, hailed Xiaomi’s arrival on Twitter with photos of the launch event.

Launching RedMi2 Prime – 1st India-made smartphone by @MiIndiaOfficial with @hbarra @manukumarjain and @amitabhk87 pic.twitter.com/CiYkxOCrbT

— N Chandrababu Naidu (@ncbn) August 10, 2015

Naidu added that he’s “upbeat about Xiaomi’s success” in India as it battles global rivals like Samsung and Apple, as well as homegrown brands such as Micromax.

Indian prime minister Narendra Modi has vowed to make the country a global manufacturing hub.