Sony Ericsson to make mobile phones in India

Sony Ericsson, a joint venture between Japanese electronics and entertainment company Sony Corp. (6758.TO) and Swedish telecommunications major Telefon AB LM Ericsson (ERIC), expects to make up to 10 million handsets every year by 2009 in India, a statement from Sony Ericsson said.

About a third of its handsets are made by Sony Ericsson primarily in China, with the remainder made by contractors in Brazil, Japan, Malaysia, China and now in India.

It said the handsets will be manufactured in the southern Indian city of Chennai. The statement didn't detail the investment level in the venture.

The initial focus will be to make basic color phones and midlevel music-enabled phones for the Indian market. The phones will also sport customized features such as local content, said the statement.

"The decision to manufacture in India is part of this (long-term growth plan) strategic decision," it said, saying India is one of the fastest growing mobile markets and a priority for the company.

Indian mobile users pay among the lowest call rates in the world, as low as one U.S. cent a minute, and operators are rapidly expanding their networks to smaller cities and towns lured by high growth rates.