Honor has announced that its India-based team is pulling out. As revealed by company CEO George Zhao, all hands-on staff will leave, and local partners will represent the brand in the market.
In the wake of the announcement, Indian authorities have launched a series of probes into Chinese companies, including Xiaomi, Vivo, and Oppo.
A “very safe approach” will be taken in the brand’s market presence, according to George Zhao. As well, he explained that a local team had been assembled, but was disbanded due to “obvious reasons”. With its Magic4 flagship series and number series midranges, Honor has made a strong impression worldwide.
Honor’s decision to withdraw is rather unusual since the company has not been investigated. The Indian tax agency and finance ministry prosecuted other Chinese companies, but no similar measures were announced. Vivo’s bank accounts have been frozen after over $8 billion of profits were allegedly funneled to parent companies to avoid taxes, and Huawei’s offices were searched in February and Xiaomi’s offices in May. Over $551 million in unpaid customs duties was allegedly owed by Oppo.
