HP Expands Manufacturing as India PC Market Sees Strong Growth

The International Data Corporation (IDC) reports that in Q125, the conventional PC market in India expanded 8.1% year-over-year (y-o-y), with 3.3 million units shipped. With a 29.1 percent market share in Q125 and 4.6 percent annual growth in sales, HP maintained its dominance in the Indian PC market.

Under PLI 2.0, the company plans to increase its manufacturing segment in India, increasing from roughly 6% to 13% in the first year, according to Ipsita Dasgupta, SVP and MD, HP India, Bangladesh, and Sri Lanka. Over the next years, the company hopes to increase this to over 35% while also expanding into tier-II cities and concentrating more on MSMEs, which currently make about 30% of its commercial business.

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The PC market is not saturated, which is why India is experiencing such sharp growth in comparison to the rest of the world. Many PCs are in the homes of households in Western Europe, the United States, and other regions. The use of PCs is much more widespread. The potential lies in emerging markets, even when growth rates might not be as high because of refreshments. PC penetration is less than 20% in a market like India. Home market penetration was in the upper single digits in 2019, but it has since doubled. From the standpoint of PC penetration and growth, India and comparable markets continue to present opportunities.