Lenovo plans to manufacture ‘AI PCs’ in India amid diversification drive | Technology News

The world’s largest PC maker already manufactures some of its commercial PCs in India at a plant in Puducherry, while contract manufacturer Dixon makes Motorola smartphones. However, Lenovo is now also interested in manufacturing cutting-edge AI PCs in the country as it seeks to expand its local manufacturing footprint and take advantage of the government’s production-linked incentive scheme.

Ivan Cheung, Vice President & Chief Operating Officer, Asia Pacific, Lenovo (AP) (Image Credit: Anuj Bhatia/Indian Express)

“Besides just manufacturing for India, we are also looking to leverage India as a manufacturing hub. For smartphones, we are already doing this; we manufacture smartphones in India and export them to North America. For PCs, we also have a similar plan, leveraging India as part of our diversification strategy,” Cheung added.

Cheung declined to reveal whether the company plans to manufacture entry-level AI PCs or premium ones but mentioned that they are looking at high volumes. “I think it will be quite comprehensive, and the expectation for us to meet the new manufacturing requirements is quite high. The volume will be substantial, and I would say across both commercial and consumer products as well.”

Major PC makers, including Lenovo, are betting on a new type of computer, called AI PCs, which allow users to leverage AI to make tasks like finding documents, automating photo editing, and language translation easier. These new laptops differ from standard personal computers by including an additional processor tailored to accelerate AI features. The AI PC market has become competitive, with companies like Intel, Microsoft, AMD, and Qualcomm heavily marketing AI PCs to spur demand. International Data Corporation (IDC) predicts that by 2028, AI PCs will represent 92 per cent of all PCs worldwide. However, analysts argue that the concept of AI PCs remains untested with consumers globally.

Investors are betting that PC makers will benefit as consumers may replace their old computers with new PCs with more AI features. ( Image credit: Anuj Bhatia/Indian Express)

Like other major tech companies, Lenovo is aiming for aggressive expansion in both manufacturing and sales in India. The Indian government has been pushing for local manufacturing and encouraging big companies to set up manufacturing bases in the country. In fact, India has become the second-largest mobile phone manufacturer globally, with over 200 manufacturing facilities operating within the country. Many companies are also viewing India as an alternative to China as geopolitical uncertainty grows. Earlier this month, President Donald Trump announced a 10 per cent tariff on all imports from China, pressuring companies to diversify and shift manufacturing elsewhere.

“If we look at the future, in one or two years or more, for further growth and revenue, I think India will definitely be one of our key growth engines, considering the economy and the speed at which technology is adopted,” Cheung said.
Lenovo ranks among the top three PC makers in India. Last year, the PC market in India grew by 3.8 per cent, with over 14.4 million PCs shipped in the country. In November, Chief Executive Officer Yang Yuanqing raised his outlook for global shipments in 2025, predicting double-digit percentage growth, up from a previous forecast of 5 per cent to 10 per cent, citing demand for AI PCs.