Lenovo already has some experience manufacturing in India. The company has been manufacturing its ThinkPad PCs at a Pondicherry plant for several years now. The Chinese manufacturer says it has employed 1,500 employees for manufacturing lines, quality assurance and product testing at its 40,000 square feet Chennai plant. This is the first Lenovo plant to manufacture both Lenovo and Motorola phones outside China. Indian government is encouraging foreign players to manufacture in India, who can benefit from large, skilled and economical labour force in the country and in return will help improve employment opportunities for Indian youth. All phones with ‘Made in India’ label are also bound to garner some goodwill amidst Indian buyers.

“Lenovo is not new to manufacturing in India. We recognised the potential of India and we invested in PC manufacturing several years ago. Lenovo’s investment in the new manufacturing plant represents the potential we see in the Indian market and our long term commitment to our customers,” Chen Xudong, president MBG Group, Lenovo and chairman Motorola Mobility operating board said. To start with, Lenovo will only manufacture K3 Note and Moto E in India. Manufacturing lines for other popular smartphones will be added later.