Lenovo intends to produce AI-enabled PCs in India this year, highlighting the company’s efforts to diversify its supply chain in the major country with the highest rate of growth in the world.
“It’s in the early stages, but we need to first comply with the local government policy,” said Ivan Cheung, Vice President & Chief Operating Officer, Asia Pacific, Lenovo (AP), in an interview with indianexpress.com at an event in Yokohama, Japan. “We need to focus on manufacturing and serving the Indian demand first before expanding the plant and manufacturing capability.”
While Dixon, a contract manufacturer, produces Motorola cellphones, the largest PC manufacturer in the world already produces some of its business PCs in India at a factory in Puducherry. But as it looks to increase its local manufacturing presence and capitalize on the government’s production-linked incentive program, Lenovo is now also interested in producing state-of-the-art AI PCs in the nation.
“Besides just manufacturing for India, we are also looking to leverage India as a manufacturing hub. For smartphones, we are already doing this; we manufacture smartphones in India and export them to North America. For PCs, we also have a similar plan, leveraging India as part of our diversification strategy,” Cheung added.
Cheung declined to reveal whether the company plans to manufacture entry-level AI PCs or premium ones but mentioned that they are looking at high volumes. “I think it will be quite comprehensive, and the expectation for us to meet the new manufacturing requirements is quite high. The volume will be substantial, and I would say across both commercial and consumer products as well.”
Lenovo and other major PC manufacturers are placing bets on a new kind of computer known as AI PCs, which let users use AI to automate picture editing, retrieve documents, and translate languages. The extra CPU on these new laptops is designed to speed up AI functions, setting them apart from conventional personal computers. With firms like Intel, Microsoft, AMD, and Qualcomm aggressively promoting AI PCs to increase demand, the market for AI PCs has grown competitive. According to the International Data Corporation (IDC), AI PCs will account for 92% of all PCs globally by 2028. Analysts counter that customers throughout the world have not yet tested the idea of AI PCs.
Lenovo is striving for rapid growth in India’s production and sales, much like other significant IT firms. The Indian government has been encouraging large corporations to establish manufacturing facilities in the nation and promoting domestic manufacturing. India now has more than 200 manufacturing facilities, making it the world’s second-largest producer of mobile phones. As geopolitical unpredictability increases, many businesses are increasingly seeing India as a potential substitute for China. President Donald Trump put pressure on businesses to diversify and move their production elsewhere earlier this month when he proposed a 10% tax on all imports from China.
“If we look at the future, in one or two years or more, for further growth and revenue, I think India will definitely be one of our key growth engines, considering the economy and the speed at which technology is adopted,” Cheung said.Lenovo is one of India’s top three PC manufacturers. Over 14.4 million PCs were supplied in India last year, representing a 3.8% increase in the country’s PC market. Citing demand for AI PCs, Chief Executive Officer Yang Yuanqing increased his projection for worldwide shipments in 2025 from a previous estimate of 5% to 10%, indicating double-digit percentage growth.
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