Tata Group to take over Pegatron's iPhone plant: Will it change iPhone price in India?

Tata Group is in talks with Pegatron to take over its iPhone manufacturing plant near Chennai in India. As a part of the deal, Tata Group’s subsidiary, Tata Electronics will enter into a joint venture with Pegatron India to manufacture iPhones at the latter’s Chennai assembly plant. Tata Group reportedly plans to hold a 65 percent stake in the joint venture, which in turn will help the company to scale up the production of iPhones in the country.

According to a Reuter’s report, the joint venture will operate Pegatron’s iPhone assembly plant near Chennai in Tamil Nadu. The company is also likely to take over a second iPhone assembly plant, which Pegatron has been building at its Chennai campus for months now.

Pegatron’s India factory has 10,000 employees and it makes around five million iPhones every year. When Tata Group takes over operations from Pegatron, it will provide technical support to the joint venture.

Notably, reports of Tata Group taking over Pegatron’s iPhone assembly plant in Tamil Nadu first emerged in May 2023. At the time, reports said that the company would partner with Pegatron to setup an iPhone assembly plant at the Hosur city near Chennai. Now, reports suggest that the company is planning to take over Pegatron’s existing facility and that the entire process is likely to conclude in next six months.

This is Tata Group’s second iPhone assembly plant in India.

It is worth noting that this not first Tata Group‘s first iPhone assembly plant in India. Last year, the company took over an iPhone assembly plant in Karnataka from Wistron for $125 million. The company is also building a manufacturing facility Hosur in Tamil Nadu. Tata Group’s join venture with Pegatron is likely to provide technical assistance at this upcoming plant.

Will Tata Group’s takeover of Pegatron’s plant reduce iPhone prices in India?

No, iPhone prices are likely to remain unchanged in India despite an increase in the local production. However, the development is likely to increase iPhone production in India. When the takeover is complete and Tata’s new factory begins the manufacturing process, the Tata Group is likely to contribute 20-25 percent of the total iPhone shipments.