Xiaomi India is undergoing significant leadership changes while steering its strategy toward the premium market segment. During a recent media event, senior executives outlined the company's plans to introduce high-end smartphones and expand its IoT product portfolio, though they confirmed no immediate plans for EV launches in India.
According to Mint, the Economic Times, and the Times of India, Xiaomi aims to strengthen its presence in the premium smartphone segment over the next decade. While known for budget-friendly devices, the company is gradually transforming its strategy to capture a larger share of the premium market.
Anuj Sharma, Xiaomi India's Chief Marketing Officer (CMO), revealed that the company is reducing the proportion of devices sold below INR15,000 (US$176.74) as it strives to align with the market's average selling price of INR24,000 (US$282.78).
Despite falling to fifth place in the Indian smartphone market, Xiaomi plans to double its consumer base over the next decade by expanding its IoT and home products ecosystem. The company envisions connecting over 700 million devices through its portfolio of TVs, tablets, and wearables.
Following the recent SU7 EV launch, Xiaomi clarified that its electric vehicle strategy would remain focused on China for the next three years. While acknowledging India's potential, the company emphasized the need for thorough market research before considering global expansion.
The improving diplomatic relations between India and China have created a positive outlook for Xiaomi India, potentially facilitating stronger collaborations with Chinese counterparts. The company maintains operational autonomy while maintaining close ties with its headquarters in China.
Recent leadership appointments, including Sudhin Mathur as Chief Operating Officer (COO) and Anuj Sharma as CMO, do not signal a strategic shift, according to company executives. Mathur has emphasized continuity in the company's direction and commitment to success while adapting to evolving market dynamics.
Muralikrishnan B, president of Xiaomi's Indian operations, announced his departure from the role by the end of 2024. He will transition to serving as an independent strategic adviser to the company.
According to IDC, Xiaomi's market share in India declined to 11.4% in the third quarter of 2023, positioning it behind Vivo, Oppo, Samsung, and Realme in the smartphone market.
Bloomberg Intelligence projects that Xiaomi's EV segment will drive future growth, forecasting a 137% increase in sales. This growth will be supported by expanded production from a second factory and a new SUV model launch. In the smartphone sector, the shift to premium models and higher average selling prices is expected to stabilize shipments and support moderate sales growth.
