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Covid-19 impact: Lenovo-Motorola, Xiaomi, Lava to shut factories

Xiaomi’s four factories in Tamil Nadu and Noida will stop production from March 24. The Chinese smartphone maker has eight plants for smartphones, smart TVs and power banks, operated by contract manufacturer partners. Local handset company Lava International has shut its manufacturing facility in Noida, Uttar Pradesh.

Last Updated: Mar 24, 2020, 07.52 AM IST
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Samsung, Oppo and Vivo suspended production at their respective Noida and Greater Noida plants on March 22
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NEW DELHI: Xiaomi, the market leader in smartphone sales in India, Lenovo-Motorola and Lava are shutting their handset factories in various parts of India after state governments ordered lockdowns to contain the spread of the coronavirus.

Lenovo-Motorola will shut its smartphone and PC factories from Tuesday.

“Till 23rd March, the Puducherry and Chennai factories are operational,” Prashanth Mani, MD of Motorola Group, told ET.

Xiaomi’s four factories in Tamil Nadu and Noida will stop production from March 24. The Chinese smartphone maker has eight plants for smartphones, smart TVs and power banks, operated by contract manufacturer partners. “Each facility such as corporate office, warehouse, service centre, Mi Home, and manufacturing plant will abide by the lockdown orders,” a Xiaomi spokesperson said.

Xiaomi and Lenovo-Motorola did not say how long their plants would be closed.

“The lockdown can cause a fall of 40% in phone sales in the month of April. Also, if Samsung, which is the majority exporter of phones and parts, continues the shutdown for more than two weeks, exports can fall by 50%,” said Neil Shah, research director, Counterpoint Technology Market Research.

Local handset company Lava International has shut its manufacturing facility in Noida, Uttar Pradesh. “We have shut the factory between 22 March-25 March as per UP government’s directive,” a Lava spokesperson told ET.

According to company data, the plant has a manufacturing capacity of 3 million units per month, of which 2 million units are exported every year.

Samsung, Oppo and Vivo suspended production at their respective Noida and Greater Noida plants on March 22, following lockdown orders from the Uttar Pradesh government.

“As a measure to safeguard our employees and their families against Covid-19 and in compliance with directives from the government, we have decided to currently suspend our manufacturing operations and have asked employees at our sales, marketing and R&D offices across India to work from home,” a Samsung spokesperson said in a statement.

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