Lenovo Achieves Record Revenues in India, Eyes AI Growth
Consumer and enterprise hardware giant Lenovo has achieved a significant milestone, crossing $2 billion in revenues from its Indian operations for the first time in FY25. This remarkable growth is attributed to impressive double-to-triple-digit increases in sales of Motorola handsets, Lenovo PCs, and data center servers.
Positive Outlook from Leadership
Matthew Zielinski, President of International Markets at Lenovo, shared these optimistic figures during the Lenovo Tech World event held in Mumbai. “Our business is, I would go as far as saying, on fire,” Zielinski stated. As of Q2, Lenovo’s India revenue has reached approximately $2.5 billion, an impressive jump from $2 billion for the entire previous fiscal year.
Highlighting the company’s outstanding performance, Zielinski noted, “This past quarter alone, our business was up 58% year-on-year in terms of revenue.”
Strong Performance and Export Growth
In the calendar year 2024, Lenovo’s operation in India built and shipped products worth Rs 18,000 crore. Zielinski revealed that Lenovo’s Motorola segment has gained a solid foothold in the market, achieving an 8% market share and experiencing growth rates between 100% and 160%.
Moreover, Lenovo is taking strides in expanding its export operations by shipping Motorola phones from India to international markets, including North America. Zielinski emphasized that the company is committed to leveraging the Production-Linked Incentives (PLI) offered by the Indian government.
Manufacturing and Future Ventures
Shailendra Katyal, Managing Director of Lenovo India, reiterated the company’s commitment to local manufacturing. “100% of Lenovo smartphones are made in India,” he stated, with the PC portfolio’s manufacturing expected to increase from 30% to 50% by next year. This shift illustrates Lenovo’s dedication to enhancing domestic production.
AI Servers and Pioneering Technology
Katyal also announced that Lenovo is set to manufacture AI servers at its Puducherry plant, with products expected to hit the market by April 2025. This move underscores Lenovo’s focus on cutting-edge technology and innovation.
Focusing on AI Development
Lenovo plans to enhance its focus on artificial intelligence by establishing an AI Centre of Excellence in India, leveraging its extensive workforce of 14,000 employees. Introducing the new strategic initiative, Zielinski noted, “We’re really going to use India as a hub to develop next-generation artificial intelligence and GPU-based servers.”
In-House Innovations
Lenovo has also developed an in-house foundational model for AI that operates on PCs without the need for data exchange with the cloud. This innovation positions Lenovo as a frontrunner in integrating AI with hardware.
“Think of hardware, software, firmware, testing, validation—all the necessary components to build a successful, future-proof, and advanced product line. Much of that expertise and design work will take place right here in India,” Zielinski elaborated.
Conclusion
Lenovo’s achievements in India reflect its strong growth trajectory and commitment to local manufacturing and innovation. As the company continues to expand its market share and develop advanced technologies, the future looks bright for Lenovo in the Indian landscape.
Frequently Asked Questions
- What milestone has Lenovo achieved in India for FY25?
Lenovo’s India revenues have crossed $2 billion for the first time in FY25. - What are the primary growth drivers for Lenovo’s revenue in India?
Growth is attributed to significant increases in sales of Motorola handsets, Lenovo PCs, and data center servers. - What percentage of Lenovo smartphones are manufactured in India?
100% of Lenovo smartphones are made in India. - When will Lenovo’s AI servers be available in the market?
Lenovo’s AI servers are expected to be available starting April 2025. - What is Lenovo’s future focus in India?
Lenovo aims to establish an AI Centre of Excellence in India and is committed to leveraging its workforce to develop advanced AI-based technologies.
