Google has instructed its suppliers to commence production of its Pixel smartphones in India as early as the next quarter. This move highlights the American tech company’s commitment to expanding its supply chain beyond China and tapping into the rapidly growing Indian smartphone market, according to sources at Nikkei Asia.

Google’s Supply Chain strategy is a key component of its goal to ship over 10 million Pixel phones this year. This target comes after the company shipped approximately 10 million units for the first time in 2023, despite a global economic slowdown. According to a source familiar with the matter, Google will initially focus on setting up the production line for its high-end Pixel 8 Pro in the southern region of India during the April-June quarter.

Both regions of the country are seeing a rise in smartphone manufacturing centers, as companies such as Apple, Samsung, Oppo, and Xiaomi have brought numerous assembly and component suppliers into India in the last few years.

Google’s production of Pixel phones in India will start with a small quantity, but this represents a significant change in the company’s supply chain strategy. For years, Google has had its phones manufactured in Vietnam due to the increasing tech conflict between the US and China. Previously, the majority of Google’s Pixel phones were made in China.

According to data from research agency IDC, the Indian smartphone market expanded by 1% in 2023, reaching a total of 146 million units. The growth rate in the second half of the year was 11% higher than the previous year. In contrast, the global smartphone market experienced a 4.7% decline in 2023, while China, the largest smartphone market in the world, saw a 5% decrease.