Arduino, the well-known open-source microcontroller board startup, is contemplating the idea of establishing manufacturing operations in India. The primary objective behind this strategic move is to curb the proliferation of counterfeit boards and cater to the burgeoning demand from India’s young population.
Key Takeaway
Arduino is exploring the possibility of manufacturing its boards in India to combat the widespread availability of counterfeit products and address the challenge of hefty import duties for finished electronic products in the Indian market.
Exploring Manufacturing Partnerships in India
CEO Fabio Violante revealed that the Italian firm is currently in the process of exploring potential partnerships with electronic manufacturing service (EMS) companies in India. If all goes as planned, the company aims to commence local production as early as the first quarter of the upcoming year. This marks a significant departure from its current practice of producing all boards in Italy.
Challenges in the Indian Market
India stands as the largest market for Arduino IDE downloads, with a staggering 3.2 million downloads. Despite this, the country’s contribution to the company’s customer base remains less than 1%. Violante attributes this disparity to the prevalence of fake Arduino boards in the market, which are mainly sourced from China.
Addressing the Issue of Counterfeit Boards
Violante acknowledged that the problem of clone boards is not confined to India, with the company currently selling one original board for every five to six clones in the market. To tackle this issue at a global level, Arduino is focusing on making its hardware more sophisticated, thereby making it increasingly difficult to counterfeit.
India’s Push for Local Manufacturing
India has been actively encouraging global manufacturers to establish production facilities in the country, offering cashbacks and subsidies as incentives. This initiative is part of India’s efforts to compete with China and boost domestic electronics manufacturing, which has seen a remarkable 111% increase to $99 billion in the financial year 2022–23.
Prospects in India
Arduino is exploring partnerships with both large international EMS companies and smaller local players in India. The company is considering the possibility of initially manufacturing its $27 Uno R4 WiFi in the country, with plans to expand its production to include enterprise-focused Pro-series models in the future. Additionally, Arduino aims to collaborate with Indian institutes to raise brand awareness among students and integrate its products into the local curriculum.
