Luxshare Precision announces abandonment of plan to invest US$330 million in India

According to news from this website on November 20, Indian media Business Standard reported that after several attempts to expand its business in India over the past three years but failed, Apple supplier Luxshare Precision has given up its plan to invest in setting up a factory in India. .

It is reported that Luxshare Precision has decided to transfer an investment of US$330 million (currently approximately 2.383 billion yuan) to Bac Giang Province in Vietnam.

Compared with the Indian government's procrastination, the Vietnamese government immediately approved the investment last week, bringing its total investment in Vietnam to US$504 million (note on this site: currently about 3.639 billion yuan). Indian media pointed out that "this is India's loss."

According to Indian media reports, Luxshare Precision established an office in 2019 and plans to acquire an established company located in Tamil Nadu, southern India. A closed digital product manufacturer. Luxshare Precision plans to invest 7.5 billion rupees (approximately 650 million yuan) in the production of Apple mobile phone components. However, foreign direct investment (FDI) approval for the project has not been granted. According to sources familiar with the progress of the project, Luxshare Precision executives have been denied multiple visas to India.

According to Vietnam’s Bac Giang Province Industry According to news released by the park management committee, Luxshare Precision Company plans to invest an additional US$330 million in the province to build new production facilities

In fact, similar cases have occurred in other industries. BYD told its Indian joint venture partner that it will shelve a $1 billion new investment plan for electric vehicles after its investment proposal faced scrutiny in New Delhi, Reuters reported on July 28, citing people familiar with the matter. Subsequent media reported that BYD plans to enter the electric vehicle manufacturing and assembly business in Vietnam.

A senior Indian industry insider told the Global Times that this situation has seriously affected the normal operations and confidence of Chinese companies in India. He said: "India is not the only choice for Chinese companies to expand globally. Under the current circumstances, it seems more prudent to choose other markets."

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