In January 2022, the Indian Ministry of Finance recovered 6.53 billion rupees (approximately 560 million yuan) in taxes from Xiaomi Technology India Co., Ltd.
In May 2022, the Indian Ministry of Finance seized 55.51 billion rupees (approximately 4.8 billion yuan) of assets in the bank account of Xiaomi India.
Many people said that Xiaomi suffered from a "pig-killing plate". India waited for Xiaomi to grow up and fatten up in India, and then began to rob and cut off some meat to eat.
But now it seems that Xiaomi may be just the beginning. Yesterday, multiple Indian media reported that the Indian Law Enforcement Bureau conducted searches on VIVO’s offices in 44 locations across the country in one day, claiming that was investigating whether it was engaged in money laundering activities.
In fact, it is not just VIVO. Since December last year, many mobile phone manufacturers including Huawei , Xiaomi, ZTE have been investigated by relevant Indian departments. This year, more than 500 Chinese companies were surveyed in India, covering almost all companies in the Internet and communications industries.
It is obvious that India has started to take action with a plan and premeditation. As for what is the purpose? "Grabbing" some money may be the first purpose, but it is even harder to say whether it has some political overtones.
Then why did you start with Xiaomi first and then VIVO?
First of all, Xiaomi is the best-selling Chinese brand mobile phone in India, accounting for 25% of the market share in 2021. VIVO is the second best-selling Chinese brand mobile phone in India, with a share of 16%, so it has to kill the pig a little fatter.
Secondly, Xiaomi and VIVO have set up a large number of factories in India. Xiaomi already has 7 factories in India, which basically realizes the production of Indian mobile phones in India. It is difficult to do without India.
VIVO also has a large number of factories in India, and its production lines in India can even produce hundreds of millions of mobile phones annually. Not only that, VIVO has opened more than 650 service centers and more than 500 exclusive vivo stores in India.
These are huge assets. Whether it is Xiaomi or VIVO, they cannot be abandoned or removed. Therefore, India dares to investigate and impose fines. This is the "Prisoner's Dilemma" of these domestic mobile phone manufacturers in India. .
But it is undeniable that if India continues to target Chinese companies in this way, it is estimated that no matter how much assets it has, it will not be able to bear it. No matter how many mobile phones are sold in the Indian market, it will not be enough to fine several times. So what are you doing in India?
