Our investments in India will grow in double digits: Asus General Manager Mr. Peter Chang
- IBEF
- September 21, 2023
Taiwanese PC manufacturer Asus is planning to increase its investments in India as the country's personal computer (PC) sector has started to show signs of revival.
The latest laptop import limitations imposed by the Centre have not caused any operational difficulties for the company. In fact, it is anticipating an increase in festival season revenues over the previous year. The company is planning to increase its manufacturing capacity in India.
Asus’ optimism about the Indian market comes at a time when global PC makers have been reeling from the government’s recently introduced laptop import restrictions.
In an official notification on August 3, the government announced that import of laptops, tablets, and PCs will be restricted with immediate effect, in a bid to curb Chinese imports and push local manufacturing. The deadline was then extended to November 1, 2023.
As per Mr. Peter Chang, General Manager, Asia-Pacific, Systems Business at Asus, “The Indian market has a lot of potential. Right now, it is the biggest contributor for us in the Asia-Pacific region. There is a lot more room to grow in terms of PC penetration, compared to other countries. We believe that we will need to invest in India further. Our investments here will grow in double digits (within a year).”
The company with its headquarters in Taipei, is one of many vying for the IT Hardware PLI Scheme 2.0 of the Centre, which was introduced to promote domestic production. The company currently operates a small manufacturing facility in Noida, but it intends to set up a larger one in Chennai. Beginning in December of this year, all of Asus' manufacturing activities will take place in this new facility.
Asus is expecting a 5-10% increase in sales during the festival season compared to last year. It is also hoping to up its market share.
According to Mr. Eric Ou, Country Head, President, and Director, of Systems Group, Asus India, “From the next financial year, we will also be working with an international electronics manufacturing service (EMS) partner to boost local production. We are working with the Ministry of Electronics and Information Technology (MeitY) very closely.”
In addition, Mr. Arnold Su, Business Head at Consumer and Gaming Pc, Systems Business Group, Asus India, informed that the company’s average market share was 13-14% last year. Further, this year, as of now, the average share is 18%. He added that there is a high chance that Asus will become the biggest consumer notebook brand in the next few months.
Asus finished the second quarter of 2023 in fifth place with 228,000 shipments and a 7.2% market share in India. However, in the consumer segment, where Asus largely operates, it is the second-largest player behind HP and also the biggest player in the gaming segment.
The company has recently increased its offline presence as well. At the moment, Asus runs 240 exclusive locations and 4,000-6,000 dealer outlets where its products are sold. The firm plans to expand its stores to 750 districts across the country — it is currently present in 400 districts.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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