Lenovo expands PC production in India, aims to produce 100% of PCs for the Indian market in the country (Updated)

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Update 5/10/2024: The source report originally stated that Lenovo planned to move all PC production to India. However, that article was amended to reflect that Lenovo is only increasing PC production in India to serve the local market. Lenovo plans to produce all PCs for the Indian market in the country within the next three years. Lenovo's other operations remain unimpacted. We have corrected the article below accordingly.

Lenovo is expanding its PC manufacturing in India over the next three years, the company announced at Tech World India 2025, and is preparing to do the same for its AI GPU servers in Pondicherry, India.

According to a DigiTimes Asia report detailing the news, Lenovo has produced 12 million units in India and plans to increase that to nearly 17 million to meet incoming domestic and international demand. Lenovo says it now manufactures about 30% of the PCs sold in India inside the country, with plans to expand that to 50% next year and 100% in three years.

The company's plans to produce 100% of its PC products for the Indian market in India within the next three years require a local supply chain. Lenovo's far-flung operations in other parts of the globe include 30+ manufacturing sites, like China, Brazil, Germany, Japan, Mexico, and the US, among many others. Those operations remain unimpacted by the increased production in India.

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Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

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6 Comments Comment from the forums

Co BIY

Was Lenovo saying they are closing their five Chinese plants to open one in India to manufacture all their PCs for sale worldwide ?

That's how the headline and article reads but it seems more likely they were announcing that all PCs for the Indian market would in the future be made in India.

The Digitimes article is behind a paywall.

This seems more likely the result of pretty strict Indian laws that require or encourage local manufacture than a result of US tariffs.
Reply
Co BIY

eye4bear said:
This is going to help us here in the US how? Then what was the point Mr. President? All I see is the markets in chaos and more countries mad at us here in the US.

You give the US President too much credit (or demerit) in this case.

I think this story is about Indian market growth and Indian policy success.

Those policy successes are the result of fairly similar tactics that the US is attempting to use. Incentives, Legal requirements. political pressure, tariffs and even China fears. India has advantages with low labor costs and high population growth that the US does not have.
Reply
Skramblr

Co BIY said:
Was Lenovo saying they are closing their five Chinese plants to open one in India to manufacture all their PCs for sale worldwide ?

That's how the headline and article reads but it seems more likely they were announcing that all PCs for the Indian market would in the future be made in India.

The Digitimes article is behind a paywall.

This seems more likely the result of pretty strict Indian laws that require or encourage local manufacture than a result of US tariffs.
If you google it, you'll see several other articles from yesterday on the topic from other sources. Expanding their local presence in India. They currently do not ship out of India, but are planning to in the future.
Reply
nookoool

The tomshardware article as of yesterday was written to implied Lenovo was moving their entire manufacturing out of China to India. What is happening is that Lenovo is moving manufacturing to India for the Indian market because of high tariffs in India. They are not doing it to escape US tarriff as it is a matter of time before India will also get tarrif since their import tarrif are very high (ask apple and tesla)
Reply
DingusDog

Co BIY said:
You give the US President too much credit (or demerit) in this case.

I think this story is about Indian market growth and Indian policy success.

Those policy successes are the result of fairly similar tactics that the US is attempting to use. Incentives, Legal requirements. political pressure, tariffs and even China fears. India has advantages with low labor costs and high population growth that the US does not have.
You know who else has low labor costs? China. Lenovo already has factories there. This is 100% about tariffs.
Reply
Co BIY

DingusDog said:
You know who else has low labor costs? China. Lenovo already has factories there. This is 100% about tariffs.

My understanding is that Indian labor costs are currently lower than Chinese.
Reply

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