In another interview with Mint, Muralikrishnan discussed Xiaomi's manufacturing localization strategy. Xiaomi sources 50-60% of non-semiconductor components locally, encouraging suppliers to set up operations in India for further localization. Xiaomi has faced challenges in the Indian market of late. Despite its early dominance, the company saw a significant 24% year-on-year drop in smartphone shipments in 2022, relinquishing its leadership to rivals Samsung and Vivo in subsequent years. Alongside this, Xiaomi has grappled with heightened regulatory scrutiny amidst economic tensions between China and India. Moreover, a notable departure of executives has also disrupted Xiaomi's operational stability. Source: IDC, June 2024