Arduino Considering Local Manufacturing in India to Address Fake Products and Satisfy Demand
Arduino is on the verge of expanding its manufacturing operations to India. This initiative aims to curb the rise of counterfeit products and meet the demand from the country’s burgeoning youth population. The popular Italian startup, best known for its open-source microcontroller boards, is exploring potential partnerships with electronic manufacturing service (EMS) companies in India, with the goal of local production commencing as early as the first quarter of next year.
India is indisputably one of Arduino’s largest markets, boasting more than 3.2 million downloads of its Integrated Development Environment (IDE). Despite the sizable user base, India’s contribution to Arduino’s global customer base remains relatively modest, currently standing at less than 1%. CEO Fabio Violante attributes this disparity to the proliferation of fake boards within the Indian market.
One of the primary factors driving the prevalence of counterfeit Arduino products in India is the substantial import duties placed on finished electronic products. As a result, the cheaper alternatives, including clones and knockoffs predominantly from China, have gained significant traction among consumers. Arduino’s authentic products are often priced at double the cost, further exacerbating the demand for cheaper alternatives in the market.
While counterfeit boards are a global issue, the company indicates that the sale of one original board for every five to six clones in the market poses a significant commercial challenge. This stark contrast highlights the dire need for the company to address the distribution of counterfeit products on a global scale through the development of more sophisticated hardware.
To this end, Arduino aims to stay ahead of the curve by continuously innovating its product offerings, embracing more advanced microcontrollers and power sections that are harder to replicate. Violante emphasized the strategic edge this approach provides, effectively deterring counterfeiting while underpinning the company’s commitment to delivering original, high-quality products.
Furthermore, Arduino’s recent visit to India included discussions with government officials, including India’s minister of state for electronics and information technology, Rajeev Chandrasekhar. The Indian government’s incentives and subsidies for global manufacturers aiming to establish local production facilities have undoubtedly spurred Arduino’s exploration of India as a potential manufacturing hub.
Arduino’s entry into the Indian market is a significant strategic move, as the country’s electronic manufacturing industry has grown by over 111% in recent years, propelled by domestic mobile phone manufacturing. Now, the Indian government is undertaking ambitious plans to expand local production to encompass components such as displays and semiconductors.
Violante has expressed that the company’s initial phase in India will involve collaborations with local electronics manufacturers, while also exploring the potential of leveraging local production to meet demands beyond Indian borders. Building partnerships with Indian institutes and universities to integrate Arduino products into their curricula also serves as a pivotal part of their strategy.
Overall, Arduino’s decision to transition into local manufacturing in India underscores its commitment to addressing the prevalence of fake products in the market, while also leveraging the country’s burgeoning youth population and government incentives to propel its global expansion plans.
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