New Delhi: Several Chinese electronics companies operating in India are increasingly relying on financial and operational backing from their parent entities as they navigate regulatory scrutiny and legal disputes, according to recent filings with the Registrar of Companies and auditors’ reports.
According to reports, the support extends beyond technology transfers and supply of components, and includes financial guarantees, external borrowings, and assistance in managing patent-related obligations.
Filings show that Vivo Mobile India secured a standby letter of credit from its holding company to support a bank guarantee of Rs 178 crore during FY25. The company also raised external commercial borrowings worth Rs 1,709.5 crore from its ultimate parent entity, Lucky City International Ltd.
Meanwhile, Xiaomi Technology India disclosed that royalty dues to chipmaker Qualcomm are being temporarily adjusted against payables owed by the US firm to other Xiaomi group entities. The adjustment, which stood at $211.62 million in FY25, will be reversed once the Indian unit settles the royalty payments.
Xiaomi said ongoing proceedings by the Enforcement Directorate have restricted its ability to make such payments. The company’s Hong Kong entity has also extended repayment timelines on borrowings and provided corporate guarantees for the Indian arm’s banking facilities.
Industry analysts say continued regulatory scrutiny and frozen funds have increased financial pressure on Chinese firms in India, even as competitors such as Apple and Samsung Electronics strengthen their presence in the country’s smartphone market.
