Handset maker TCL yet to move ahead with factory investments in India and Brazil
Previously announced plan to build two factories overseas have stalled due to market conditions, says chairman
TCL Corp, parent company of the world’s sixth largest mobile handset maker TCL Communication Technology, has held up investments in India and Brazil despite announcing plans last year to build two factories in the countries.
Chairman and CEO Li Dongsheng told the South China Morning Post that the company has not yet acquired the needed land for the two factories, although it has been closely watching the two markets for their “big growth potential”.
“We have been prudential regarding expansion in overseas markets. Brazil’s economy went through a crisis last year, while India market is very complicated,” he said.
Li told the media last March that TCL hoped to complete factory construction in 2016 to have “a better foundation for growth in the two emerging markets”.
Li admitted that TCL’s market share in the two countries was “not good” in 2015. “A major problem with emerging markets is their low intellectual property barrier, which makes competition more fierce,” he said.
Chinese mobile phone makers have been targeting India for its vast size. Lei Jun, founder of Xiaomi, a TCL competitor, said last week its ranking in India had reached sixth or seventh in terms of sales, adding that the firm aimed to push into the top three in 2016.
