Xiaomi seeks local partners for home appliances production in India

Chinese technology company Xiaomi is seeking local partners for the production of white goods in India. According to a report by The Economic Times, sources familiar with the development stated that the company launched its dedicated home and lifestyle sub-brand 'Mijia' in India a few months ago. Currently, the proposal is in the research stage, but the company is ready to begin evaluating potential Indian suppliers.

A person knowledgeable in the matter stated, "This is a natural progression for Xiaomi as it has shown commitment to expand beyond air purifiers into categories such as air conditioners, refrigerators and washing machines." Notably, no response was received to inquiries sent to Xiaomi by the time of press.

According to analysts, Xiaomi's expansion into the white goods sector is a strategic effort to diversify its revenue streams, extend its connected device ecosystem and establish a stronger hold in India's consumer technology market. Prabhu Ram, Vice President of the Industry Research Group at Cyber Media Research, stated that entering categories like air conditioners, refrigerators and washing machines is a logical extension of Xiaomi's global IoT (Internet of Things) and ecosystem strategy. This will enable the company to capture a larger share of household spending in both value-for-money and premium segments. He added that local manufacturing partnerships will be crucial to achieve scale, deepen localisation and improve cost competitiveness.

Xiaomi has built an extensive local manufacturing footprint in smartphones and consumer electronics over the years. The company has worked with partners such as Dixon Technologies, DBG Technology and BYD Electronics for smartphones, while collaborating with Optimas Electronics for its other electronics portfolio.

Neil Shah, Co-founder and Vice President of Research at Counterpoint Research, stated that due to stagnating smartphone growth and shrinking margins caused by "chipflation", white goods are the next frontier for Xiaomi to monetise its connected ecosystem under its 'Human x Car x Home' strategy. Shah added that Xiaomi was one of the first brands to achieve nearly 100% localisation of smartphone production in India by partnering with several EMS (Electronics Manufacturing Services) companies, from Foxconn to DBG.

He further noted that appliances are not like phones; they are larger in size, incur higher freight costs and require deep local sheet metal and tooling alongside electronics. Due to restrictions on Foreign Direct Investment (FDI), setting up new greenfield plants was not viable, making partnerships with local EMS firms the only practical option to scale the business cost-effectively.

Neil Shah speculated that the company might adopt an approach similar to smartphones, extending existing relationships with Dixon for washing machines and refrigerators, while seeking help from specialists like Amber or PG Electroplast for smart air conditioners. Epek Durable could also be a good option for smaller smart devices.

However, Prabhu Ram pointed out that while Xiaomi's expanding offline retail presence gives it an advantage, converting this reach into market success will require continuous investment in distribution, manufacturing reliability, consumer trust and after-sales service, where established appliance companies currently hold a significant advantage.

This aggressive portfolio expansion aligns with the growing demand for India's connected and energy-efficient smart home ecosystem. In 2025, Xiaomi's IoT and lifestyle products segment generated revenue of over 17 billion dollars, showing a year-on-year growth of 18.3%.