Xiaomi faces tough regulatory heat in India
Xiaomi's business in India has hit a rough patch, with government agencies investigating alleged violations of tax, customs, and foreign exchange rules since late 2021.
These probes have led to about $545 million in company funds being frozen, putting real pressure on their local operations.
What's next for Xiaomi?
Even with these setbacks, Xiaomi says it's confident about its legal position and hasn't set aside money for possible losses.
Still, the impact shows—its market share in India dropped by 3.2% to 13.4% last quarter while other markets grew.
Looking ahead, Xiaomi plans to focus on premium smartphones and electronics starting 2026, with full support from global leadership.
COO Sudhin Mathur emphasized that global leadership is fully aligned and supportive of the new strategy, despite ongoing challenges.