Top Chinese electronics brands operating in India including Oppo, Vivo, Lenovo-Motorola, Haier and Midea are reportedly financing their Indian businesses through borrowings from group companies, according to recent registrar of companies (RoC) filings. This shift is driven by the absence of press note 3 (PN3) approval for equity infusion and regulatory scrutiny against several players, which has made it difficult for them to access local bank credit.
Most of the current funding is being sourced through the external commercial borrowing (ECB) route from related entities. Until PN3 norms came into effect, these companies used equity capital to support their Indian operations. PN3 regulations, introduced in 2020, restrict foreign direct investment (FDI) via the automatic route for firms headquartered in neighbouring countries, including China. All such investments now require approval from the Indian government. This approval did not come through amid border tensions, although bilateral ties are reportedly showing signs of improvement.
Lenovo India extended unsecured loans worth Rs 3 billion in FY25 to Motorola Mobility India, part of the Lenovo group, to support working capital needs, as per filings from both companies. Haier Appliances India received a Rs 2.14 billion loan from parent firm Haier Singapore Investment Holding for business requirements in FY25.
Moreover, Midea India secured an overdraft facility from Standard Chartered Bank backed by a comfort letter from its parent, Midea Group Co in China. Long-term ECBs from Midea Electric Trading (Singapore) Company stood at Rs 4.48 billion as of March 2025. The company has also deferred ECB repayments to the holding company without penalty, according to RoC filings accessed via Tofler. Meanwhile, Xiaomi has disclosed that about Rs 48.20 billion of its funds remain stuck in India as local authorities have frozen the bank accounts of its subsidiary.
Haier Appliances India has sought, though not yet received, the PN3 approval from the Department for Promotion of Industry and Internal Trade for a fresh capital infusion of Rs 10 billion from its parent, its latest filing shows. The company requires the funds to set up its third factory in India, and in the absence of PN3 clearance, is exploring a stake sale in its India arm to Bharti Group.
Additionally, Vivo Mobile India stated in an August RoC filing that ECB proceeds are being deployed for working capital, general corporate use and capital expenditure for its plants. Its ECBs totalled Rs 16.68 billion in FY24, down from Rs 28.75 billion in FY23.
Oppo Mobiles India’s latest filing also shows that it received a non-current unsecured ECB of Rs 16.67 billion in FY24 from Grand King Ltd, an Oppo subsidiary headquartered in Hong Kong, along with a Rs 4.14 billion working capital loan from HSBC Bank. In FY23, ECBs from related parties amounted to Rs 36.99 billion. Oppo India also had a current ECB of Rs 20.84 billion from Grand King in FY24.
FY25 filings from these companies are yet to be submitted.
