{"id":49843,"date":"2023-10-30T23:10:16","date_gmt":"2023-10-30T17:40:16","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=49843"},"modified":"2023-11-01T14:11:05","modified_gmt":"2023-11-01T08:41:05","slug":"tata-new-iphone-deal-to-boost-air-india-cargo-capacity","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2023\/10\/30\/tata-new-iphone-deal-to-boost-air-india-cargo-capacity\/","title":{"rendered":"Tata New iPhone Deal to Boost Air India Cargo Capacity"},"content":{"rendered":"\n

GURUGRAM-<\/strong> Tata Group’s<\/a> manufacturing arm is taking steps to secure “captive” volumes of hi-tech cargo, including iPhone, for its subsidiary, Air India (AI)<\/a>, in anticipation of aircraft deliveries.<\/p>\n\n\n\n

This strategic move follows Tata’s acquisition of Air India in January 2022, a significant development in the Indian <\/a>aviation industry that led to a surge in large-scale aircraft orders.<\/p>\n\n\n\n

\"Tata
Photo: Air India<\/figcaption><\/figure>\n\n\n\n

Tata iPhone Deal to Boost Air India Capacity<\/h2>\n\n\n\n

Air India is set to receive approximately 470 aircraft from Airbus <\/a>and Boeing<\/a>, while its competitor, IndiGo<\/a>, has ordered 500 aircraft from Airbus. <\/p>\n\n\n\n

To stay competitive, Tata, as the owner of Air India, is focusing on cargo capacity, with plans to quadruple belly cargo<\/a> capacity when operations are in full swing.<\/p>\n\n\n\n

Tata Electronics (TEPL), the manufacturing arm of the Tata Group, has purchased Wistron’s contract Apple iPhone manufacturing operations in India for $125 million. This deal is seen as a potential source of “captive” freight volumes for Air India. <\/p>\n\n\n\n

Wistron’s presence in India consists of four assembly lines in the state of Karnataka, with plans for another unit at the same location. This acquisition has made Tata the first “home-grown” iPhone<\/a> manufacturer in India, joining companies like Taiwan’s Foxconn and Pegatron. <\/p>\n\n\n\n

It’s worth noting that the Indian government recently implemented licensing requirements for the import of specific electronic goods to promote investment in local manufacturing.<\/p>\n\n\n\n

\"Tata
Photo: By Anna Zvereva – https:\/\/www.flickr.com\/photos\/130961247@N06\/49735752337\/, CC BY-SA 2.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=88934494<\/figcaption><\/figure>\n\n\n\n

Executive Insights<\/h2>\n\n\n\n

“The acquisition of Wistron by Tata is seen as a catalyst for further investment in India’s electronics manufacturing ecosystem, signaling the growth of the country’s contract manufacturing sector,” stated India’s IT minister, Ashwini Vaishnav.<\/p>\n\n\n\n

Industry insiders in the supply chain sector have also expressed optimism about the manufacturing developments in India.<\/p>\n\n\n\n

Jitendra Srivastava, CEO of Triton Logistics & Maritime, a Mumbai-based freight forwarder, told Loadstar that Tata’s acquisition of Wistron’s plant in Bengaluru offers promising opportunities for Air India to expand its freight services.<\/p>\n\n\n\n

He pointed out that as smartphone exports continue to grow, Air India’s involvement could become a significant driver of growth for the airline and the Indian smartphone manufacturing industry.<\/p>\n\n\n\n

Vineet Malhotra, co-founder and director at Kale Logistics Solutions, highlighted that Apple’s plans to shift a quarter of its manufacturing capacity to India would be an interesting development to watch.<\/p>\n\n\n\n

He suggested that it would be intriguing to see how Tata-led Air India would leverage its air cargo capabilities for iPhone exports, especially to countries like the US, China, Japan<\/a>, and the UK.<\/p>\n\n\n\n

He mentioned, ‘As Apple anticipates a rise in iPhone demand in India and ASEAN nations in the coming years, carriers like Air India will have a significant role to play, and the airline’s cargo capacity will see significant growth.’<\/p>\n\n\n\n

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Photo: avgeekwithlens\/ Harsh Tekriwal<\/figcaption><\/figure>\n\n\n\n

Enhanced Belly Capacity<\/h2>\n\n\n\n

Air India currently has around 470 Airbus and Boeing aircraft on order, with deliveries mainly scheduled to commence in 2025. This is expected to result in a fourfold increase in belly cargo capacity for the privatized airline.<\/p>\n\n\n\n

In fiscal year 2022-23, Apple iPhone exports from India experienced a fourfold growth year-on-year, reaching an estimated value of $5 billion, according to preliminary government data. <\/p>\n\n\n\n

Additionally, in the first quarter of fiscal year 2023-24, Apple surpassed Samsung to become the leading exporter of smartphones from India.<\/p>\n\n\n\n

From a policy perspective, the Indian government aims to capture a portion of the trade shift from China, as the current success falls short of expectations despite offering an enticing productivity-linked incentive scheme for investors. <\/p>\n\n\n\n

Nevertheless, due to high import tariffs on smartphone imports, local contract manufacturing by foreign brands has gained momentum, positioning India as arguably the world’s second-largest handset manufacturing hub, following China.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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Air India Makes New Changes to London and Copenhagen Flights<\/a><\/blockquote>