Honor made a comeback in the Indian market in 2023, but within just two years of its relaunch, the company is now grappling with significant challenges. Its Indian licensee, HonorTech Universal, has struggled to launch new smartphones over the past six months due to stalled operations. This ongoing crisis has resulted in widespread layoffs. The company aims to capture a 5 percent market share by the end of 2024. However, according to an Economic Times report, it is encountering hurdles in importing fully built smartphones from China. The report also highlighted that HonorTech has faced difficulties in securing visas for its Chinese executives.
Furthermore, the company has been taken to the National Company Law Tribunal (NCLT) over unpaid debts totaling more than Rs 2.65 crore. HonorTech disputes these claims, stating that some of them are inaccurate and still under reconciliation.
CEO Madhav Sheth pointed out that the company has been facing issues with the import of Completely Built Units (CBUs), which has hindered their ability to obtain any Bureau of Indian Standards (BIS) certification in the past six months. He acknowledged that this situation has adversely affected their short-term operations. Sheth also expressed a keen desire to launch their flagship smartphone and several other models, but unfortunately, they have been unable to do so.
In response to the ongoing challenges, HonorTech has applied for certifications for five upcoming products and submitted a localisation roadmap to demonstrate its commitment to Indian manufacturing and ecosystem development.
As per the report, industry insiders mentioned that Honor China is pulling back support for HonorTech regarding spare parts and funding, likely due to the Indian government’s ongoing scrutiny of Chinese investments. This withdrawal has intensified after-sales issues, resulting in a surge of consumer complaints on social media.