Xiaomi global management halts investment in India amid declining shipments and frozen funds

There was a time when the Chinese manufacturer Xiaomi dominated the Indian market with huge sales and growing demand for Xiaomi devices in the country. But lately, Xiaomi has seen a fall in its revenue share in India, as per IDC Xiaomi’s shipments in India also fell 23.5% YoY in Q2, 2025, which resulted in Xiaomi leaving its top 5 position.

Reportedly, the ongoing investigations by the Directorate of Revenue Intelligence, Customs, Income Tax Department, and the Enforcement Directorate over illegal foreign remittances resulted in over Rs 4,700 crore in frozen funds of Xiaomi. This has created a fear of high risk among investors to invest for future profits in India due to perceived risk and uncertainty.

The falling revenue share and frozen funds have been the reasons that Xiaomi’s global management has decided to halt its investment in India due to these challenges. The brand seems to focus currently on the global market as Xiaomi has introduced various home appliances globally, but there is no mention of their launch in India, while the smartphones that are launched globally arrive with similar specs or some minor customizations in the Indian market. As per industry executives, Xiaomi has refrained from investing R&D funds for India-specific products.

And with growing competition, Indian consumers seem to have switched to better options available in the market, resulting in less demand for Xiaomi devices.

Via.