Honor re-entered the Indian market in 2023, but less than two years later, the brand is facing serious headwinds, reported IndiaTV. Its Indian partner, HonorTech Universal, has been unable to launch new smartphone models in the last six months, with operations reportedly stalled.
The ongoing chaos has led to a wave of layoffs. While the company had set an ambitious goal of capturing a 5 per cent market share by the end of 2024, a report by The Economic Times suggests that multiple roadblocks are hindering progress.
These include challenges in importing fully assembled smartphones from China and difficulties in obtaining visas for Chinese executives
Additionally, the company is facing legal proceedings at the National Company Law Tribunal (NCLT) over alleged unpaid dues amounting to more than Rs.2.65 crore.
However, HonorTech has contested the claims, asserting that some of the amounts are inaccurate and currently undergoing reconciliation.
CEO Madhav Sheth acknowledged that the company has been struggling with the import of Completely Built Units (CBUs), which has prevented them from securing Bureau of Indian Standards (BIS) certification over the past six months. He admitted that these challenges have negatively impacted the company’s short-term operations.
Sheth also emphasised their strong intent to launch their flagship smartphone along with several other models, but said they have been unable to proceed due to the ongoing setbacks.
In light of the ongoing challenges, HonorTech has submitted certification applications for five upcoming products and presented a localisation roadmap, underscoring its commitment to manufacturing in India and contributing to the local tech ecosystem.
According to the report, industry insiders revealed that Honor China is scaling back its support to HonorTech in terms of spare parts and funding — likely a consequence of the Indian government's eye on Chinese investments.
This retreat has worsened after-sales service, leading to a spur in consumer complaints across social media platforms.
