Micromax Shifts Gears: From Stalled Smartphone Sales to a Thrust Into Electric Vehicles(EVs)

Recent history is littered with examples of tech giants radically altering their business models to cope with changing times. Sometimes, the companies were sold altogether after struggling to find a place for themselves in the industry. Nokia is a good example of this, with the tech giant selling its mobile phone division to Microsoft in 2013. Today, it is the turn of Micromax, a former market leader in the mobile phone industry, to switch strategies. Despite the company’s recent difficulties, this radical shift of focus to Electric Vehicles (EVs) might turn out to be a good decision. 

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Brief History of Micromax

Micromax Informatics is a New Delhi-based manufacturer of home appliances and consumer electronics. The company built a stellar reputation for itself starting in 2008 when it entered the industry as a smartphone maker. By 2010, Micromax had become one of the largest smartphone makers in the world, with its growth rivalling some of the biggest companies in the world. 

In 2014, Micromax sales in India exceeded those of established tech giants like Samsung. However, in recent years, the company has faced stiff competition from Chinese brands like Xiaomi, Vivo, and Oppo. It slowly lost its grip on the Indian market, prompting a wave of radical moves aimed at helping it recover lost ground.

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A Swift Decline

Having begun as a small IT firm, Micromax successfully transitioned to smartphones in 2008. The first stage of Micromax’s decline in the smartphone manufacturing industry can be traced to 2014. At the time, Xiaomi and other Chinese smartphone vendors began to shift focus onto the Indian market. The market disruption was similar to the effect of Micromax’s products on Samsung’s offerings years before. From there, it began losing market share to Chinese companies offering affordable products. 

Micromax: Major Changes and New Strategies

Reports on social media indicate the company’s reluctance to deal with customer complaints. Additionally, retailers and distributors struggle with inventory due to reduced demand for Micromax smartphones. Perhaps, more significantly, the company has recently seen several layoffs. Some exits include top brass officials, including the Chief Business Officer and Chief Product Officer. However, these wholesale changes are as much a result of the company’s decline as its radically shifting business strategy. 

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Entry Into the EVs Business

Recent reports indicate that Micromax is altering its business strategy to focus on EVs. Several sources, primarily outgoing staff, have suggested that the EV move would come in the form of a new brand and focus, for starters, on two-wheel EVs. The EV market in India is set to grow exponentially in light of consumer demand, government policies, and environmental concerns. Micromax’s stalled smartphone sales are on the verge of transitioning to EV manufacturing, and the future is bright.

Conclusion

Micromax’s decline coincided with the entry of Chinese smartphone brands into the Indian market. Although the company has not provided formal reports of its ailing fortunes, reports from various sources paint a stark picture. With the EV market in India dominated by other players like Hero Electric, Ather, and Ola, the stage is set for an interesting tech tussle. 

Frequently Asked Questions

Is Micromax a Tech Giant?

Since its formation in 2000, it has reinvented itself multiple times. Its business strategy relied on manufacturing low-cost feature phones and was highly instrumental to Micromax’s market share, briefly topping the likes of Samsung in India. More growth came in subsequent years, especially after the company poached Vineet Taneja, Samsung’s country head for mobile and digital imaging in India. Despite trailblazing successes, Micromax’s status as a tech giant has recently come under threat for various reasons. 

What Caused Micromax’s Decline?

A combination of stiff competition and poor market positioning caused Micromax’s decline. Additionally, the Indian government offered tax breaks and other incentives to foreign investors, making it even harder for Micromax to compete. The culmination came when Micromax failed to transition to 4G technology as quickly as its other competitors, seriously affecting its capital. 

Are EVs the Future of Automobility?

Electric Vehicles(EVs) are the future, and Micromax’s shift to EV manufacturing is an innovation in line with rapidly shifting technological trends. With various countries and organisations increasingly aware of the damaging effects of carbon emissions, the EV market is set to witness tremendous growth. Although Elon Musk’s Tesla continues to lead the EV market, subsequent years will see stiff competition from other companies.