HP Inc. has announced that it intends to manufacture all personal computers (PCs) it sells in India locally within the next three to five years. According to CEO Enrique Lores, once local production covers domestic demand, HP may also export India-manufactured machines to other markets.
Why This Matter for India & HP
Local manufacturing boost
By shifting to full local manufacturing, HP aligns with India’s “Make in India” ambitions and may benefit from local incentives (such as PLI schemes for IT hardware).
Supply-chain resilience & global strategy
The move reflects broader global supply-chain realignment (especially amid geopolitics) and positions India as a potential export hub for HP. Lores noted the world is increasingly splitting into two tech-stacks (Chinese and Western) and companies must adapt
Potential export hub
HP isn’t just aiming for domestic fulfilment — the long-term plan is to serve export markets from India once scale and capability are built.
Current Progress & Timeline
- As of April 2025, HP India stated that about 13% of the PCs it sells in India will be locally made by end-2025.
- The newly announced target is full (100%) localization of PCs sold in India within three to five years.
- HP already manufactures some PC products (laptops, desktops, monitors) at its facility in Sriperumbudur, Chennai, in partnership with EMS (electronic manufacturing services) firms. The Times of India
Implications & Considerations
For consumers & cost
Local manufacturing may lead to shorter lead-times, possibly fewer currency/import duties impacts and quicker availability for new product launches.
For Indian manufacturing ecosystem
HP’s step could benefit component suppliers, EMS players (such as VVDN Technologies, Dixon Technologies) and enable job creation in India’s electronics manufacturing sector.
For HP
HP can reduce dependence on imports, mitigate risks of supply disruption, and better leverage India’s potential as a low-cost production base for both domestic and export markets.
For global tech & competition
As global PC demand evolves (with AI-enabled PCs and new compute form-factors on the horizon), having local manufacturing gives HP flexibility and agility. Lores noted that HP expects more personal-computing devices (and new form-factors) around ambient AI in the next 5 years.
Challenges
- Achieving full localisation (100%) requires supply-chain maturity: component sourcing, logistics, quality, cost control.
- Export readiness: competing globally means HP India production will need to match global standards and cost competitiveness.
- Timeline is ambitious: three-to-five years is fast for full coverage. Market and manufacturing dynamics may shift.
What to Watch Next
- The actual increase in locally manufactured share over the next 12-24 months (Will HP move from 13% in 2025 to say 50% by 2027?).
- Announcements of HP’s partnerships/expansions with Indian EMS players, new factories or capacity.
- Whether HP begins to export Indian-made PCs and to which markets.
- How component supply-chain evolves in India, and whether India becomes a viable hub vs other Asian manufacturing centres.
- Impact on pricing, availability and product launches of HP PCs in India.
- Competitive responses from rivals like Dell, Lenovo, Asus etc.
This announcement signals a big shift in HP’s India strategy — transitioning from being a brand that imports or assembles locally, to one that envisages fully manufacturing the PCs sold in India (and beyond) from Indian facilities.
