Xiaomi sources more production in India amid regulatory scrutiny

Xiaomi Corp. is deepening local sourcing in India, where the Chinese smartphone company seeks to regain the market share it lost amid heightened regulatory scrutiny and stiff competition.

Xiaomi contracted homegrown Optiemus Electronics Ltd. to make its Bluetooth neckband earphones — the first time an Indian supplier will make an audio product for the Beijing-based tech giant, Muralikrishnan B, president of Xiaomi India, said in an interview.

“This marks our entry into a whole new set of categories,” Muralikrishnan said late last week at an Optiemus factory in the Noida suburb of the Indian capital New Delhi. “We see this as a milestone, as further proof of our commitment to making in India.”