T.M. Roh, president and head of Samsung's mobile experience (MX) business, stated that the company will commence laptop manufacturing at its Noida facility this year. This decision highlights India's increasing importance as a manufacturing hub for the Korean giant, positioning the country as its second-largest manufacturing base.

Roh attributed Samsung's expansion in the country to the supportive policies of the Indian government. However, he acknowledged that the global demand slowdown in 2023 required some adjustments at its facilities. "Noida stands as Samsung's second-largest base," Roh remarked, suggesting that there might be modifications at the plant to align with global demand. Nonetheless, he emphasized that Noida remains a crucial base for the company.

In August last year, India implemented restrictions on the import of laptops, tablets, servers, and other related items. The objective was to decrease India's dependence on imported IT hardware, aligning with the production-linked incentive (PLI) schemes targeting consumer electronics such as personal computers, laptops, and tablets.

In May 2023, the government unveiled a revamped ₹17,000 crore PLI scheme for IT hardware to invite manufacturers of laptops, tablets, and other hardware to establish operations in India. This initiative followed an initial version with a lower allocation that did not gain traction. India currently imports laptops and tablets amounting to approximately $8 billion annually.

Referring to forecasts from global market research firms, Roh remarked that indicators were pointing towards a projected market growth of approximately 5% in 2024, which is anticipated to bring the market back to its 2022 levels. However, he emphasized the importance of introducing new features such as Galaxy AI, which involves AI integration in mobile phones, which is expected to generate new use cases among smartphone users and stimulate demand in 2024.

He further mentioned that worldwide, replacement cycles were extending, yet an increasing number of consumers were investing in high-end premium products. Samsung aims to capitalize on this market trend by prioritizing AI development for mobile phones.

Samsung has a track record of manufacturing feature phones, smartphones, wearables, and tablets in India. Roh affirmed that the company will persist in collaborating with the government to bolster manufacturing operations in the country.

The senior executive emphasized that the country will continue to play an important role in advancing Galaxy AI technology, serving as the primary hub for cutting-edge smartphone innovations. He highlighted the significant contributions of the R&D centers in Noida and Bangalore, particularly in software development to enhance AI for mobile devices, in validating AI interpretation, and in providing translation services.

"We aim to integrate Galaxy AI into approximately 100 million units within the year, enhancing user experiences and accessibility while promoting the adoption of AI technology. Similar to our approach with LTE, 5G technology, and foldable phones, we remain committed to swiftly popularizing new technologies," stated Roh.

The company unveiled its flagship Galaxy S24 series smartphone, featuring notable artificial intelligence functionalities. Although the utilization of Galaxy AI remains complimentary until the end of 2025, Roh indicated that the company has yet to decide whether to extend this offer beyond 2025 or initiate charges for it.

The flagship model represents one of the newest products manufactured locally and will be accessible for purchase in stores by the month's end. Roh mentioned that pre-orders for the flagship device in India were showing promising signs of interest.

On Friday, the government unveiled a fresh electric vehicle (EV) policy, anticipated to significantly boost Tesla's operations to commence operations in India.

Under the new policy, the government plans to reduce import duties on specific electric vehicles for firms that pledge to invest a minimum of Rs 4150 crore ($500 million) and establish a domestic manufacturing unit within the country.

The revised policy instructs companies to invest at least $500 million in India. They will be allotted a three-year window to set up domestic manufacturing units for electric vehicles (EVs), ensuring that a minimum of 25 percent of the components are sourced locally.

Companies meeting these requirements will be authorized to import a maximum of 8,000 electric vehicles (EVs) per year, with a lowered import duty of 15 percent applicable to vehicles priced at $35,000 and above. India currently imposes import tariffs ranging from 70 percent to 100 percent on imported automobiles, varying according to their value.

Key Highlights of the EV policy -

1. What is the minimum investment needed?

Companies interested must pledge a minimum investment of Rs 4150 crore (USD 500 Mn). However, there is no maximum limit on investment.

2. What is the schedule for production?

The manufacturing facilities in India must be established within 3 years, commence commercial production of e-vehicles, and achieve a maximum of 50 percent domestic value addition (DVA) within 5 years.

3. What constitutes Domestic Value Addition (DVA) and what is the method used to calculate it during manufacturing?

Domestic Value Addition (DVA) signifies the proportion of locally sourced components utilized in manufacturing. Companies are required to attain a localization level of 25 percent by the 3rd year and 50 percent by the 5th year.

4. How is the investment commitment guaranteed?

The company's investment commitment must be supported by a bank guarantee instead of the customs duty waived.

5. What are the consequences of failing to meet the DVA and minimum investment requirements?

If the DVA and minimum investment criteria outlined in the scheme guidelines are not met, the bank guarantee will be utilized.

6. Are there any customs duties imposed on imported vehicles?

Indeed, a customs duty of 15 percent (as applied to Completely Knocked Down units) will be enforced on vehicles with a minimum CIF value of USD 35,000 and above for a duration of 5 years, contingent upon the manufacturer establishing manufacturing facilities in India within 3 years.

7. What are the consequences if a company chooses to import EVs instead of manufacturing locally?

The duty waived on the total quantity of EVs permitted for import would be restricted to the investment made or Rs 6484 crore (equivalent to the incentive under the PLI scheme), whichever is lesser.

If the investment amounts to $800 million or more, a maximum of 40,000 EVs, at a rate of no more than 8,000 per year, would be allowed. Unused annual import quotas can be rolled

 over.